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<div style="font-size:12pt">1.        BASIS OF PRESENTATION Our accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of our management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. All significant intercompany transactions have been eliminated. Certain reclassifications were made to prior year balances to conform wit h the presentation of the financial statements for the three months ended July 3, 2010. Operating results for the three month period ended July 3, 2010 are not necessarily indicative of the results that may be expected for the full fiscal year ending April 2, 2011, or any other interim period. These unaudited consolidated financial statements should be read in conjunction with our audited consolidated financial statements and footnotes included in our annual report on Form 10-K for the fiscal year ended April 3, 2010. The Company considers events or transactions that occur after the balance sheet date but prior to the issuance of the financial statements to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated, and these financial statements reflect those material items that arose after the balance sheet date but prior to the issuance of the financial statements that would be consider ed recognized subsequent events. There were no material recognized subsequent events recorded in the July 3, 2010 consolidated financial statements. Our fiscal year ends on the Saturday closest to the last day of March. Fiscal year 2011 includes 52 weeks with all four quarters each having 13 weeks. Fiscal year 2010 included 53 weeks with each of the first three quarters having 13 weeks and the fourth quarter having 14 weeks.Revenue Recognition Our revenue recognition policy is to recognize revenues from product sales, software and services in accordance with ASC Topic 605, Revenue Recognition, and ASC Topic 985-605, Software. These standards require that revenues are recognized when persuasive evidence of an arrangement exists, product delivery, including customer acceptance, has occurred or services have been rendered, the price is fixed or determinable and collectibility is reasonably assured. When more than one element such as equipment, disposables and services are contained in a single arrangement, we allocate revenue between the elements based on each element’s relative fair value, provided that each element meets the criteria for treatment as a separate unit of accounting. An item is considered a separate unit of accounting if it has value to the customer on a stand alone basis and there is objective and reliable evidence of the fair value of the undelivered items. The fair value of the undelivered elements is determined by the price charged when the element is sold separately, or in cases when the item is not sold separately, by using vendor specific objective evidenced under ASC Topic 985-605 or other objective evidence as defined in ASC Topic 605.Product Revenues Product sales consist of the sale of our equipment devices and the related disposables used with these devices. On product sales to end customers, revenue is recognized when both the title and risk of loss have transferr ed to the customer as determined by the shipping terms and all obligations have been completed. Examples of common post delivery obligations are installation and training. For product sales to distributors, we recognize revenue for both equipment and disposables upon shipment of these products to our distributors. Our standard contracts with our distributors state that title to the equipment passes to the distributors at point of shipment to a distributor's location. The distributors are responsible for shipment to the end customer along with installation, training and acceptance of the equipment by the end customer. All shipments to distributors are at contract prices and payment is not contingent upon resale of the product.Software Solutions Revenues Our software solutions include software products and support for our plasma, blood bank, and hospital customers. For our blood bank customers, these products span blood center operations and automate and track ope rations from the recruitment of the blood donor to the disposition of the blood product. For plasma customers, we also provide information technology platforms for managing distribution of plasma from collection centers to plasma fractionation facilities. We offer products to our hospital customers that manage blood product inventory, supports patient cross matching and transfusion management. We also offer an analytical tool that monitors and measures a hospital’s blood management practices. Software solution product offerings are sold both as a subscription, where license revenues are generally billed periodically, monthly, or quarterly, and recognized ratably over the term of the subscription, and as a perpetual license, which are billed up front. We recognize revenue from the sale of perpetual licenses when delivered, provided all other revenue recognition criteria are met and we have vendor specific objective evidence of fair value for undelivered elements sold with the license. Addition ally, for certain software solutions products, we provide customized implementation services to our customer. For these arrangements, we recognize revenue on a percentage-of-completion basis. We also provide other services, including in some instances hosting, technical support, and maintenance, for the payment of periodic, monthly, or quarterly fees. We recognize these fees and charges as earned, typically as these services are provided during the contract period.</div>

<div style="font-size:12pt">2.        RECENT ACCOUNTING PRONOUNCEMENTSIn October 2009, the FASB issued Accounting Standards Update No. 2009-13, Multiple-Deliverable Revenue Arrangements, an amendment to FASB ASC topic 605, Revenue Recognition, and Update No. 2009-14, Certain Revenue Arrangements That Include Software Elements, an amendment to FASB ASC subtopic 985-605, Software – Revenue Recognition (the “Updates”). The Updates provide guidance on arrangements that include software elements, including tangible products that have software components that are essential to the functionality of the tangible product and will no longer be within the scope of the software revenue recognition guidance, and software-enabled products that w ill now be subject to other relevant revenue recognition guidance. The Updates provide authoritative guidance on revenue arrangements with multiple deliverables that are outside the scope of the software revenue recognition guidance. Under the new guidance, when vendor specific objective evidence or third party evidence of fair value for deliverables in an arrangement cannot be determined, a best estimate of the selling price is required to separate deliverables and allocate arrangement consideration using the relative selling price method. The Updates also include new disclosure requirements on how the application of the relative selling price method affects the timing and amount of revenue recognition. The Updates must be adopted in the same period using the same transition method and are effective prospectively, with retrospective adoption permitted, for revenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010. Early adoption is also permitted; howe ver, early adoption during an interim period requires retrospective application from the beginning of the fiscal year. The Company is currently assessing the timing and method of adoption, as well as the possible impact of this guidance on its financial position and results of operations. In December 2009, the FASB issued Accounting Standards Update No. 2009-17, Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities, an amendment to FASB ASC Topic 810, Consolidations. ASU No. 2009-17 requires an enterprise to perform an analysis to determine whether the enterprise’s variable interest or interests give it a controlling financial interest in a variable interest entity. Additionally, an enterprise is required to assess whether it has an implicit financial responsibility to ensure that a variable interest entity operates as designed when determining whether it has the power to direct the activities of the variable interest entity that most s ignificantly impact the entity’s economic performance. The update became effective for our fiscal year 2011 and its impact is reflected in the notes to our consolidated financial statements for the first three months ended July 3, 2010.</div>

<div style="font-size:12pt">3.        EARNINGS PER SHARE (“EPS”) The following table provides a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations. Basic EPS is computed by dividing net income by weighted average shares outstanding. Diluted EPS includes the effect of potentially dilutive common shares.<table style="border-collapse: collapse; margin-top: 20px;"><tr><td height="17" width="310" align="left"> </td><td width="235" align="center" colspan="5" style="border-bottom: 1px solid #000000;" height="17">For the Three Months Ended</td></tr><tr><td height="17" width="310" align="left"> </td><td width="108" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="17">July 3, 2010</td><td height="17" style="border-top: 1px solid #000000;" align="left" width="19"> </td><td width="108" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="17">June 27, 2009</td></tr><tr><td height="17" width="310" align="left"> </td><td width="235" align="center" colspan="5" style="border-top: 1px solid #000000;" height="17">(in thousands, except per share amounts)</td></tr><tr><td height="17" width="310" align="left">Basic EPS</td><td height="17" width="12" align="left"> </td><td height="17" width="96" align="left"> </td><td height="17" width="19" align="left"> </td><td height="17" width="12" align="left"> </td><td height="17" width="96" align="left"> </td></tr><tr><td height="17" width="310" align="left">Net income</td><td height="17" width="12" align="left">$</td><td height="17" width="96" align="right">17,918 </td><td height="17" width="19" align="left"> </td><td height="17" width="12" align="left">$</td><td height="17" width="96" align="right">18,073 </td></tr><tr><td height="17" width="310" align="left"> </td><td height="17" width="12" align="left"> </td><td height="17" width="96" align="left"> </td><td height="17" width="19" align="left"> </td><td height="17" width="12" align="left"> </td><td height="17" width="96" align="left"> </td></tr><tr><td height="17" width="310" align="left">Weighted average shares</td><td height="17" style="bor der-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="96">25,140 </td><td height="17" width="19" align="left"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="96">25,658 </td></tr><tr><td height="18" width="310" align="left">Basic income per share</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="96">0.71 </td><td height="18" width="19" align="left"> </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="96">0.70 </td></tr><tr><td height="18" width="310" align="left"> </td><td height="18" style="border-top: 3px double #000000;" align="left" width="12"> </td><td height="18" style="border-top: 3px double #000000;" align="left" width="96"> </td><td height="18" width="19" align="left"> </td><td height="18" style="border-top: 3px double #000000;" align="left" width="12"> </td><td height="18" style="border-top: 3px double #000000;" align="left" width="96"> </td></tr><tr><td height="17" width="310" align="left">Diluted EPS</td><td height="17" width="12" align="left"> </td><td height="17" width="96" align="left"> < ;/td><td height="17" width="19" align="left"> </td><td height="17" width="12" align="left"> </td><td height="17" width="96" align="left"> </td></tr><tr><td height="17" width="310" align="left">Net income</td><td height="17" width="12" align="left">$</td><td height="17" width="96" align="right">17,918 </td><td height="17" width="19" align="left"> </td><td height="17" width="12" align="left">$</td><td height="17" width="96" align="right">18,073 </td></tr><tr><td height="17" width="310" align="left"> </td><td height="17" width="12" align="left"> </td><td height="17" width="96" align="left"> </td><td height="17" width="19" align="left"> </td><td height="17" width="12" align="left"> </td><td height="17" width="96" align="left"> </td></tr><tr><td height="17" width="310" align="left">Basic weighted average shares</td><td height="17" width="12" align="left"> </td><td height="17" width="96" align="right">25,140 </td><td height="17" width="19" align="left"> </td><td height="17" width="12" align="left"> </td><td height="17" width="96" align="right">25,658 </td></tr><tr><td height="17" width="310" align="left">Net effect of common stock equivalents</td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="96">563 </td><td height="17" width="19" align="left"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="12"> </td>&l t;td height="17" style="border-bottom: 1px solid #000000;" align="right" width="96">543 </td></tr><tr><td height="17" width="310" align="left">Diluted weighted average shares</td><td height="17" style="border-top: 1px solid #000000;" align="left" width="12"> </td><td height="17" style="border-top: 1px solid #000000;" align="right" width="96">25,703 </td><td height="17" width="19" align="left"> </td><td height="17" style="border-top: 1px solid #000000;" align="left" width="12"> </td><td height="17" style="border-top: 1px solid #000000;" align="right" width="96">26,201 </td></tr><tr><td height="17" width="310" align="left"> </td><td height="17" width="12" align="left"> </td><td height="17" width="96" align="left"> </td><td height="17" width="19" align="left"> </td><td height="17" width="12" align="left"> </td><td height="17" width="96" align="left"> </td></tr><tr><td height="18" width="310" align="left">Diluted income per share</td><td height="18" style="border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="18" style="border-bottom: 3px double #000000;" align="right" width="96">0.70 </td><td height="18" width="19" align="left"> </td><td height="18" style="border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="18" style="border-bottom: 3px double #000000;" align="right" width="96">0.69 </td></tr></table>Weighted average shares outstanding, assuming dilution, excludes the impact of 1.0 million and 1.3 million stock options for the first quarter of fiscal year 2011 and 2010, respectively, because these securities were anti-dilutive during the noted periods.</div>

<div style="font-size:12pt">4.        STOCK-BASED COMPENSATION Stock-based compensation expense of $2.2 million and $2.8 million was recognized for the three months ended July 3, 2010 and June 27, 2009, respectively. The related income tax benefit recognized was $0.5 million and $0.8 million for the three months ended July 3, 2010 and June 27, 2009, respectively. We recognize stock-based compensation on a straight line basis. For a more detailed description of our stock-based compensation plans, see Note 11—Capital Stock to the Company’s consolidated financial statements included in our Annual Report on Form 10-K for the year ended April 3, 2010. Our stock-based compensation plans currently consist of stock options, restricted stock awards, restricted stock units and an employee stock purchase plan. Options become exercisable in the manner specified by the Compensation Committee of our Board of Directors. All options, restricted stock awards, and restricted stock units granted to employees in the three months ended July 3, 2010 vest over a four year period of time and the options expire not more than 7 years from the date of grant. Cash flows relating to the benefits of tax deductions in excess of compensation cost recognized are reported as a financing cash flow, rather than as an operating cash flow. This excess tax benefit was $0.5 million and $0.2 million for the three months ended July 3, 2010 and June 27, 2009, respectively.<table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="696" align="left" height="17" colspan="7">The weighted average fair value for our options granted in the first three months of fiscal year 2011 and 2010 was $17.48</td></tr><tr><td wi dth="696" align="left" height="17" colspan="7"> and $15.94, respectively. The assumptions utilized for option grants during the periods presented are as follows:</td></tr><tr><td height="17" width="26" align="left"> </td><td height="17" width="341" align="left"> </td><td height="17" width="26" align="left"> </td><td height="17" width="110" align="left"> </td><td height="17" width="19" align="left"> </td><td height="17" width="110" align="left"> </td><td height="17" width="64" align="left"> </td></tr><tr><td height="17" width="26" align="left"> </td><td height="17" width="341" align="left"> </td><td height="17" width="26" align="left"> </td><td width="239" align="center" colspan="3" style="border-bottom: 1px solid #000000;" height="17">Three Months Ended&l t;/td><td height="17" width="64" align="left"> </td></tr><tr><td height="17" width="26" align="left"> </td><td height="17" width="341" align="left"> </td><td height="17" width="26" align="left"> </td><td height="17" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="110">July 3, 2010</td><td height="17" style="border-top: 1px solid #000000;" align="center" width="19"> </td><td height="17" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="110">June 27, 2009</td><td height="17" width="64" align="left"> </td></tr><tr><td width="367" align="left" height="17" colspan="2">Stock Options Black-Scholes assumptions (weighted average):</td><td height="17" width="26" align="left"> </td><td height="17" style="border-top: 1px s olid #000000;" align="left" width="110"> </td><td height="17" width="19" align="left"> </td><td height="17" style="border-top: 1px solid #000000;" align="left" width="110"> </td><td height="17" width="64" align="left"> </td></tr><tr><td height="17" width="26" align="left"> </td><td height="17" width="341" align="left">Volatility</td><td height="17" width="26" align="left"> </td><td height="17" width="110" align="right">28.34% </td><td height="17" width="19" align="left"> </td><td height="17" width="110" align="right">31.85% </td><td height="17" width="64" align="left"> </td></tr><tr><td height="17" width="26" align="left"> </td><td height="17" width="341" align="left">Expected life (years)</td><td height="17" width="26" align="left"&g t; </td><td height="17" width="110" align="right">5.0 </td><td height="17" width="19" align="left"> </td><td height="17" width="110" align="right">4.9 </td><td height="17" width="64" align="left"> </td></tr><tr><td height="17" width="26" align="left"> </td><td height="17" width="341" align="left">Risk-free interest rate</td><td height="17" width="26" align="left"> </td><td height="17" width="110" align="right">2.64% </td><td height="17" width="19" align="left"> </td><td height="17" width="110" align="right">1.79% </td><td height="17" width="64" align="left"> </td></tr><tr><td height="17" width="26" align="left"> </td><td height="17" width="341" align="left">Dividend yield</td><td height="17" width="26" align="left"&g t; </td><td height="17" width="110" align="right">0.00% </td><td height="17" width="19" align="left"> </td><td height="17" width="110" align="right">0.00% </td><td height="17" width="64" align="left"> </td></tr></table>As of July 3, 2010 and June 27, 2009, there was $0.1 million and $0.2 million, respectively, of total unrecognized compensation cost related to non vested restricted stock awards. That cost is expected to be recognized over a weighted average period of 0.8 years and 1.3 years, respectively. The total fair value of restricted stock awards vested was $0.1 million for both the three months ended July 3, 2010 and June 27, 2009.As of July 3, 2010 and June 27, 2009, there was $3.5 million and $3.6 million, respectively, of total unrecognized compensation cost related to non vested restricted stock units. That cost is expected to be recognized over a weighted a verage period of 2.3 years and 2.9 years, respectively. The total fair value of shares fully vested was $0.0 million for the three months ended July 3, 2010 and June 27, 2009.As of July 3, 2010 and June 27, 2009, there was $0.2 million and $0.2 million, respectively, of total unrecognized compensation expense, net of estimated forfeitures, related to the Employee Stock Purchase Plan (“ESPP”) shares. That cost is recognized over the remaining purchase period. During the three months ended July 3, 2010 and June 27, 2009, there were 35,992 and 33,183 shares purchased under the ESPP, respectively. They were purchased at $45.70 and $43.89 per share under the ESPP, respectively.</div>

<div style="font-size:12pt">5.        ACCOUNTING FOR SHIPPING AND HANDLING COSTS Shipping and handling costs are included in cost of goods sold with the exception of $2.2 million and $2.9 million for the three months ended July 3, 2010 and June 27, 2009, respectively, that are included in selling, general, and administrative expenses. Freight is classified in cost of goods sold when the customer is charged for freight and in selling, general and administration when the customer is not explicitly charged for freight.</div>

<div style="font-size:12pt">6. PRODUCT WARRANTIES We generally provide a warranty on parts and labor for one year after the sale and installation of each device. We also warrant our disposables products through their use or expiration. We estimate our potential warranty expense based on our historical warranty experience, and we periodically assess the adequacy of our warranty accrual and make adjustments as necessary.<table style="border-collapse: collapse; margin-top: 20px;"><tr><td height="17" width="299" align="left"> </td><td width="235" align="center" colspan="5" style="border-bottom: 1px solid #000000;" height="17">For the three months ended</td></tr><tr><td height="17" width="299" align="left"> </td><td width="108" align="center" colspan="2" style="bo rder-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="17">July 3, 2010</td><td height="17" style="border-top: 1px solid #000000;" align="center" width="19"> </td><td width="108" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="17">June 27, 2009</td></tr><tr><td height="17" width="299" align="left"> </td><td height="17" style="border-top: 1px solid #000000;" align="left" width="12"> </td><td width="223" align="center" colspan="4" style="border-top: 1px solid #000000;" height="17">(in thousands)</td></tr><tr><td height="17" width="299" align="left">Warranty accrual as of the beginning of the period</td><td height="17" width="12" align="left">$</td><td height="17" width="96" align="right"> 903 </td><td height="17" width="19" align="left"> </td>&l t;td height="17" width="12" align="left">$</td><td height="17" width="96" align="right"> 1,835 </td></tr><tr><td height="17" width="299" align="left">Warranty provision</td><td height="17" width="12" align="left"> </td><td height="17" width="96" align="right"> 435 </td><td height="17" width="19" align="left"> </td><td height="17" width="12" align="left"> </td><td height="17" width="96" align="right"> 391 </td></tr><tr><td height="17" width="299" align="left">Warranty spending</td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="96"> (459)</td><td height="17" width="19" align="left"> </td><td height="17" style="border-bott om: 1px solid #000000;" align="left" width="12"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="96"> (351)</td></tr><tr><td height="18" width="299" align="left">Warranty accrual as of the end of the period</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="96"> 879 </td><td height="18" width="19" align="left"> </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="96"> 1,875 </td></tr></table></div> <div style="font-size:12pt">7.        COMPREHENSIVE INCOME Comprehensive income is the total of net income and all other non-owner changes in stockholders’ equity. Other non-owner changes are primarily foreign currency translation, the change in our net minimum pension liability, and the changes in fair value of the effective portion of our outstanding cash flow hedge contracts.<table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="649" align="left" height="17" colspan="8">A summary of the components of other comprehensive income is as follows:</td></tr><tr><td height="16" width="26" align="left"> </td><td height="16" width="369" align="left"> </td><td height="16" width="12" align="left">&am p;#160;</td><td height="16" width="19" align="left"> </td><td height="16" width="96" align="left"> </td><td height="16" width="12" align="left"> </td><td height="16" width="19" align="left"> </td><td height="16" width="96" align="left"> </td></tr><tr><td width="395" align="left" height="18" colspan="2"> </td><td height="18" width="12" align="left"> </td><td width="242" align="center" colspan="5" style="border-bottom: 2px solid #000000;" height="18">For the three months ended</td></tr><tr><td width="395" align="left" colspan="2" style="border-bottom: 1px solid #000000;" height="16">(In thousands)</td><td height="16" width="12" align="left"> </td><td width="115" align="center" colspan="2" style=" border-top: 2px solid #000000;border-bottom: 1px solid #000000;" height="16">July 3, 2010</td><td height="16" style="border-top: 2px solid #000000;" align="left" width="12"> </td><td width="115" align="center" colspan="2" style="border-top: 2px solid #000000;border-bottom: 1px solid #000000;" height="16">June 27, 2009</td></tr><tr><td width="395" align="left" colspan="2" style="border-top: 1px solid #000000;" height="16">Net income</td><td height="16" width="12" align="left"> </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="right" width="19">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="right" width="96"> 17,918 </td><td height="16" width="12" align="left"> </td><td height="16" style="border-top: 1 px solid #000000;border-bottom: 1px solid #000000;" align="right" width="19">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="right" width="96"> 18,073 </td></tr><tr><td width="395" align="left" height="16" colspan="2"> </td><td height="16" width="12" align="left"> </td><td height="16" style="border-top: 1px solid #000000;" align="right" width="19"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="96"> </td><td height="16" width="12" align="left"> </td><td height="16" style="border-top: 1px solid #000000;" align="right" width="19"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="96"> </td></tr><tr><td width="395" align="left" height="16" colspan="2">Other comprehensive income:</td ><td height="16" width="12" align="left"> </td><td height="16" width="19" align="right"> </td><td height="16" width="96" align="left"> </td><td height="16" width="12" align="left"> </td><td height="16" width="19" align="right"> </td><td height="16" width="96" align="left"> </td></tr><tr><td width="395" align="left" height="16" colspan="2">Net change in minimum pension liability</td><td height="16" width="12" align="left"> </td><td height="16" width="19" align="right"> </td><td height="16" width="96" align="right"> (49)</td><td height="16" width="12" align="left"> </td><td height="16" width="19" align="right"> </td><td height="16" width="96" align="right"> - </td></tr><tr><td width="395" align="left" height="16" colspan="2">Foreign currency translation</td><td height="16" width="12" align="left"> </td><td height="16" width="19" align="right"> </td><td height="16" width="96" align="right"> (4,247)</td><td height="16" width="12" align="left"> </td><td height="16" width="19" align="right"> </td><td height="16" width="96" align="right"> 2,631 </td></tr><tr><td width="395" align="left" height="16" colspan="2">Unrealized gain/(loss) on cash flow hedges, net of tax</td><td height="16" width="12" align="left"> </td><td height="16" width="19" align="right"> </td><td height="16" width="96" align="right"> 450 </td><td height="16" width="12" align="left"> </td><td height="16" width="19" align="right"> </td><td height="16" width="96" align="right"& gt; (1,008)</td></tr><tr><td width="395" align="left" height="16" colspan="2">Reclassifications into earnings of cash flow hedge </td><td height="16" width="12" align="left"> </td><td height="16" width="19" align="right"> </td><td height="16" width="96" align="left"> </td><td height="16" width="12" align="left"> </td><td height="16" width="19" align="right"> </td><td height="16" width="96" align="left"> </td></tr><tr><td height="16" width="26" align="left"> </td><td height="16" width="369" align="left">(gains)/losses, net of tax</td><td height="16" width="12" align="left"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="19"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="96">&#160 ;(31)</td><td height="16" width="12" align="left"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="19"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="96"> (1,120)</td></tr><tr><td width="395" align="left" height="17" colspan="2">Total comprehensive income</td><td height="17" width="12" align="left"> </td><td height="17" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="19">$</td><td height="17" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="96"> 14,041 </td><td height="17" width="12" align="left"> </td><td height="17" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="19">$</td><td height="17" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="96"> 18,576 </td></tr></table></div>

<div style="font-size:12pt">8.        INVENTORIES Inventories are stated at the lower of cost or market and include the cost of material, labor and manufacturing overhead. Cost is determined on the first-in, first-out method.<table style="border-collapse: collapse; margin-top: 20px;"><tr><td height="17" width="271" align="left"> </td><td width="122" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="17">July 3, 2010</td><td height="17" width="26" align="center"> </td><td width="122" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="17">April 3, 2010</td></tr><tr><td height="17" width="271" align="left"> </td><td height="17" style="border-top: 1 px solid #000000;" align="left" width="12"> </td><td width="258" align="center" colspan="4" style="border-top: 1px solid #000000;" height="17">(in thousands)</td></tr><tr><td height="17" width="271" align="left">Raw materials</td><td height="17" width="12" align="left">$</td><td height="17" width="110" align="right"> 28,211 </td><td height="17" width="26" align="left"> </td><td height="17" width="12" align="left">$</td><td height="17" width="110" align="right"> 25,850 </td></tr><tr><td height="17" width="271" align="left">Work-in-process</td><td height="17" width="12" align="left"> </td><td height="17" width="110" align="right"> 3,426 </td><td height="17" width="26" align="left"> </td><td height="17" width="12" align="left"> </td><td height="17" width="110" align="right"> 3,825 </td></tr><tr><td height="17" width="271" align="left">Finished goods</td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="110"> 52,934 </td><td height="17" width="26" align="left"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="110"> 50,278 </td></tr><tr><td height="18" width="271" align="left"> </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" al ign="right" width="110"> 84,571 </td><td height="18" width="26" align="left"> </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="110"> 79,953 </td></tr></table></div>

<div style="font-size:12pt">9.        GOODWILL, OTHER INTANGIBLE ASSETS, AND ACQUISITIONS <table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="687" align="left" height="17" colspan="5">Goodwill</td></tr><tr><td height="17" width="33" align="left"> </td><td height="17" width="366" align="left"> </td><td height="17" width="12" align="left"> </td><td height="17" width="75" align="left"> </td><td height="17" width="201" align="left"> </td></tr><tr><td width="687" align="left" height="17" colspan="5">The change in the carrying amount of our goodwill during the three months ended July 3, 2010 is as follows </td></tr><tr><td width="687" align="left" height="17" colspan="5">(in thousands):</td></tr><tr><td width="687" align="left" height="17" colspan="5"> </td></tr><tr><td width="399" align="left" height="17" colspan="2">Carrying amount as of April 3, 2010</td><td height="17" width="12" align="left">$</td><td height="17" width="75" align="right"> 120,543 </td><td height="17" width="201" align="left"> </td></tr><tr><td width="399" align="left" height="17" colspan="2">Global Med Technologies (Global Med) (a)</td><td height="17" width="12" align="left"> </td><td height="17" width="75" align="right"> (2,858)</td><td height="17" width="201" align="left"> </td></tr><tr><td width ="399" align="left" height="17" colspan="2">SEBRA (b)</td><td height="17" width="12" align="left"> </td><td height="17" width="75" align="right"> (907)</td><td height="17" width="201" align="left"> </td></tr><tr><td width="399" align="left" height="17" colspan="2">Effect of change in rates used for translation</td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="75"> 961 </td><td height="17" width="201" align="left"> </td></tr><tr><td width="399" align="left" height="18" colspan="2">Carrying amount as of July 3, 2010</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="18" style="border-top: 1px solid #000000 ;border-bottom: 3px double #000000;" align="right" width="75"> 117,739 </td><td height="18" width="201" align="left"> </td></tr><tr><td height="18" width="33" align="left"> </td><td height="18" width="366" align="left"> </td><td height="18" style="border-top: 3px double #000000;" align="left" width="12"> </td><td height="18" style="border-top: 3px double #000000;" align="left" width="75"> </td><td height="18" width="201" align="left"> </td></tr><tr><td height="17" width="33" align="left"> </td><td height="17" width="366" align="left"> </td><td height="17" width="12" align="left"> </td><td height="17" width="75" align="left"> </td><td height="17" width="201" align="left"> </td></tr><tr><td height="17" width="33" align ="left">(a)</td><td width="654" align="left" height="17" colspan="4">A description of the acquisition of Global Med Technologies, which occurred on March 31, 2010, is </td></tr><tr><td height="17" width="33" align="left"> </td><td height="17" width="366" align="left">included later in this footnote.</td><td height="17" width="12" align="left"> </td><td height="17" width="75" align="left"> </td><td height="17" width="201" align="left"> </td></tr><tr><td height="17" width="33" align="left">(b)</td><td width="654" align="left" height="17" colspan="4">A description of the acquisition of SEBRA®, which occurred on September 4, 2009, is included later</td></tr><tr><td height="17" width="33" align="left"> </td><td width="654" align="left" height="17" colspan="4">in this footnote.</td></tr></t able>Global Med Acquisition On March 31, 2010 the Company completed its cash tender offer for the shares of Global Med Technologies, Inc. (“Global Med”). The total acquisition cost for the shares and outstanding warrants of Global Med was approximately $60.3 million. Goodwill was preliminarily determined by comparing the purchase price with the preliminarily determined fair value of the assets and liabilities acquired. Once the purchase price allocation is finalized, the preliminary carrying value of the related goodwill may be adjusted accordingly. At July 3, 2010, goodwill recorded after our preliminary purchase price allocation was $47.3 million and is not tax deductible. Global Med has an in-place workforce with extensive knowledge and experience in the development and support of blood management software.  The acquisition was a unique strategic fit for the Company given our global presence and customer relationships in blood man agement. <table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="701" align="left" height="17" colspan="5">Preliminary Purchase Price Allocation</td></tr><tr><td width="701" align="left" height="17" colspan="5"> </td></tr><tr><td width="701" align="left" height="17" colspan="5">The following chart summarizes the preliminary purchase price allocation:</td></tr><tr><td width="701" align="left" height="17" colspan="5"> </td></tr><tr><td height="17" width="33" align="left"> </td><td height="17" width="366" align="left"> </td><td width="101" align="center" height="17" colspan="2">(in thousands)</td><td height="17" width="201" align="left"> </td></tr><tr><td width="399" align="left" height="17" colspan="2">Goodwill</td>&l t;td height="17" width="12" align="left">$</td><td height="17" width="89" align="right"> 47,251 </td><td height="17" width="201" align="left"> </td></tr><tr><td width="399" align="left" height="17" colspan="2">Intangible assets subject to amortization</td><td height="17" width="12" align="left"> </td><td height="17" width="89" align="right"> 25,962 </td><td height="17" width="201" align="left"> </td></tr><tr><td width="399" align="left" height="17" colspan="2">Trade accounts receivable</td><td height="17" width="12" align="left"> </td><td height="17" width="89" align="right"> 6,344 </td><td height="17" width="201" align="left"> </td></tr><tr><td width="399" align="left" height="17" colspan="2">Other assets</td><td height="17" width="1 2" align="left"> </td><td height="17" width="89" align="right"> 11,966 </td><td height="17" width="201" align="left"> </td></tr><tr><td width="399" align="left" height="17" colspan="2">Deferred taxes</td><td height="17" width="12" align="left"> </td><td height="17" width="89" align="right"> (9,087)</td><td height="17" width="201" align="left"> </td></tr><tr><td width="399" align="left" height="17" colspan="2">Notes payable</td><td height="17" width="12" align="left"> </td><td height="17" width="89" align="right"> (7,833)</td><td height="17" width="201" align="left"> </td></tr><tr><td width="399" align="left" height="17" colspan="2">Deferred revenue</td><td height="17" width="12" align="left"> </td><td height="17" width="89 " align="right"> (8,064)</td><td height="17" width="201" align="left"> </td></tr><tr><td width="399" align="left" height="17" colspan="2">Other liabilities</td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="89"> (6,258)</td><td height="17" width="201" align="left"> </td></tr><tr><td width="399" align="left" height="18" colspan="2">Total</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="89"> 60,281 </td><td height="18" width="201" align="left"> </td></tr></table>The Company is still in the process of evaluating the information necessary to determine the allocation of fair value of the assets and liabilities acquired. The preliminary purchase price allocation will be finalized once the Company has completed this evaluation, which will occur not later than one year from the acquisition date. When finalized, the purchase price will be more specifically allocated to identified intangible assets acquired, the value of tangible assets and liabilities acquired may be adjusted, and the value of the tax attributes acquired may be diminished. Additionally, estimated intangible asset amortization expense recorded to date may also be adjusted. The impact of these adjustments may result in a change in the preliminary value attributed to goodwill. The results of Global Med’s operations are included in our consolidated financial statements for the first three months of fiscal year 2011. SEBRA Acquisition On September 4, 2009, Haemonetics acquir ed the assets of the blood collection and processing business unit (“SEBRA”) of Engineering and Research Associates, Inc., a leading provider of blood and medical manufacturing technologies. SEBRA products, which include tubing sealers, blood shakers, sterile connection systems, mobile lounges and ancillary products used in blood collection and processing, complement Haemonetics’ portfolio and add depth to Haemonetics’ blood bank and plasma product lines. The purchase price of $12.8 million was allocated to core technology of $2.0 million, customer relationships of $4.6 million, trade name intangible of $0.4 million, trade accounts receivables of $1.0 million, inventory of $1.1 million, and goodwill of $3.7 million. Neoteric Acquisition On April 16, 2009, Haemonetics acquired the outstanding shares of Neoteric. Neoteric is a medical information management company that markets a full end-to-end suite of products to track, allocate, release, and dispense hospital blood units while controlling inventory and recording the disposition of blood. The acquisition strategically broadened Haemonetics' blood management solutions. The purchase price was $6.6 million plus contingent consideration. The purchase price including contingent consideration was allocated to other intangible assets of $5.0 million, deferred tax liabilities of $1.6 million, and goodwill of $8.7 million. The contingent consideration is based upon estimated annual revenue growth for the three years following the acquisition, at established profitability thresholds, and is not limited. Using projected revenues for fiscal years 2010, 2011, and 2012, an analysis was performed that probability weighted three performance outcomes for the noted years. The Company is required to reassess the fair value of contingent consideration on a periodic basis. During fiscal year 2010, the Company reassessed the fair value of the contingent considerat ion as performance outcomes for 2010 were not met, which resulted in a reduction in the estimated liability. The ending liability balance is $4.1 million at July 3, 2010. <table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="646" align="left" height="17" colspan="8">Amortized Intangibles</td></tr><tr><td height="17" width="310" align="left"> </td><td height="17" width="12" align="left"> </td><td height="17" width="89" align="left"> </td><td height="17" width="19" align="left"> </td><td height="17" width="12" align="left"> </td><td height="17" width="89" align="left"> </td><td height="17" width="19" align="left"> </td><td height="17" width="96" align="left"> </td></tr><tr><td height="17" width="310" align="left">As of July 3, 2010& lt;/u></td><td height="17" width="12" align="left"> </td><td height="17" width="89" align="left"> </td><td height="17" width="19" align="left"> </td><td height="17" width="12" align="left"> </td><td height="17" width="89" align="left"> </td><td height="17" width="19" align="left"> </td><td height="17" width="96" align="center">Weighted</td></tr><tr><td height="17" width="310" align="left"> </td><td width="101" align="center" height="17" colspan="2">Gross Carrying</td><td height="17" width="19" align="center"> </td><td width="101" align="center" height="17" colspan="2">Accumulated</td><td height="17" width="19" align="center"> </td><td height="17" width="96" align="center">Average</td></tr><tr><td height="17" width="310" a lign="left"> </td><td width="101" align="center" height="17" colspan="2">Amount</td><td height="17" width="19" align="center"> </td><td width="101" align="center" height="17" colspan="2"> Amortization</td><td height="17" width="19" align="center"> </td><td height="17" width="96" align="center">Useful Life</td></tr><tr><td height="18" width="310" align="left"> </td><td width="101" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="18">(in thousands)</td><td height="18" width="19" align="center"> </td><td width="101" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="18">(in thousands)</td><td height="18" width="19" align="center"> </td><td height="18" style="border-bottom: 1px solid #000000;" align="center" width="96">(in years)</td></tr>&l t;tr><td height="17" width="310" align="left">Patents</td><td height="17" style="border-top: 1px solid #000000;" align="left" width="12">$</td><td height="17" style="border-top: 1px solid #000000;" align="right" width="89"> 12,091 </td><td height="17" width="19" align="right"> </td><td height="17" style="border-top: 1px solid #000000;" align="left" width="12">$</td><td height="17" style="border-top: 1px solid #000000;" align="right" width="89"> 6,049 </td><td height="17" width="19" align="center"> </td><td height="17" style="border-top: 1px solid #000000;" align="center" width="96">11 </td></tr><tr><td height="17" width="310" align="left">Capitalized software</td><td height="17" width="12" align="left"> </td><td height="17" width="89" align="right"> 8,881 </td><td height=" 17" width="19" align="right"> </td><td height="17" width="12" align="right"> </td><td height="17" width="89" align="right"> 537 </td><td height="17" width="19" align="center"> </td><td height="17" width="96" align="center">6 </td></tr><tr><td height="17" width="310" align="left">Other technology</td><td height="17" width="12" align="left"> </td><td height="17" width="89" align="right"> 53,927 </td><td height="17" width="19" align="right"> </td><td height="17" width="12" align="right"> </td><td height="17" width="89" align="right"> 15,961 </td><td height="17" width="19" align="center"> </td><td height="17" width="96" align="center">10 </td></tr><tr><td height="17" width="310" align="left">Customer contracts and related relationships</td><td height="17" width="12" align="left"> </td><td height="17" width="89" align="right"> 43,664 </td><td height="17" width="19" align="right"> </td><td height="17" width="12" align="right"> </td><td height="17" width="89" align="right"> 12,548 </td><td height="17" width="19" align="center"> </td><td height="17" width="96" align="center">11 </td></tr><tr><td height="17" width="310" align="left">Trade names</td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="89"> 1,496 </td><td height="17" width="19" align="right"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right " width="12"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="89"> 750 </td><td height="17" width="19" align="center"> </td><td height="17" width="96" align="center">6 </td></tr><tr><td height="18" width="310" align="left">Total intangibles</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="89"> 120,059 </td><td height="18" width="19" align="right"> </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="89"> 35,845& ;#160;</td><td height="18" width="19" align="center"> </td><td height="18" width="96" align="center">10 </td></tr><tr><td height="18" width="310" align="left"> </td><td height="18" style="border-top: 3px double #000000;" align="left" width="12"> </td><td height="18" style="border-top: 3px double #000000;" align="left" width="89"> </td><td height="18" width="19" align="left"> </td><td height="18" style="border-top: 3px double #000000;" align="left" width="12"> </td><td height="18" style="border-top: 3px double #000000;" align="left" width="89"> </td><td height="18" width="19" align="left"> </td><td height="18" width="96" align="left"> </td></tr><tr><td height="17" width="310" align="left">As of April 3, 2010< /td><td height="17" width="12" align="left"> </td><td height="17" width="89" align="left"> </td><td height="17" width="19" align="left"> </td><td height="17" width="12" align="left"> </td><td height="17" width="89" align="left"> </td><td height="17" width="19" align="left"> </td><td height="17" width="96" align="center">Weighted</td></tr><tr><td height="17" width="310" align="left"> </td><td width="101" align="center" height="17" colspan="2">Gross Carrying</td><td height="17" width="19" align="center"> </td><td width="101" align="center" height="17" colspan="2">Accumulated</td><td height="17" width="19" align="center"> </td><td height="17" width="96" align="center">Average</td></tr><tr><td height="17" width="310" align="left"&g t; </td><td width="101" align="center" height="17" colspan="2">Amount</td><td height="17" width="19" align="center"> </td><td width="101" align="center" height="17" colspan="2"> Amortization</td><td height="17" width="19" align="center"> </td><td height="17" width="96" align="center">Useful Life</td></tr><tr><td height="17" width="310" align="left"> </td><td width="101" align="left" colspan="2" style="border-bottom: 1px solid #000000;" height="17">(in thousands)</td><td height="17" width="19" align="center"> </td><td width="101" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="17">(in thousands)</td><td height="17" width="19" align="center"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="center" width="96">(in years)</td></tr><tr><td height="17" width="310" align="left">Patents</td><td height="17" style="border-top: 1px solid #000000;" align="left" width="12">$</td><td height="17" style="border-top: 1px solid #000000;" align="right" width="89"> 11,928 </td><td height="17" width="19" align="right"> </td><td height="17" style="border-top: 1px solid #000000;" align="left" width="12">$</td><td height="17" style="border-top: 1px solid #000000;" align="right" width="89"> 5,801 </td><td height="17" width="19" align="center"> </td><td height="17" style="border-top: 1px solid #000000;" align="center" width="96">11 </td></tr><tr><td height="17" width="310" align="left">Capitalized software</td><td height="17" width="12" align="left"> </td><td height="17" width="89" align="right"> 7,642 </td><td height="17" width="19" align="right"> </td><td height="17" width="12" align="left"> </td><td height="17" width="89" align="right"> 498 </td><td height="17" width="19" align="center"> </td><td height="17" width="96" align="center">6 </td></tr><tr><td height="17" width="310" align="left">Other technology</td><td height="17" width="12" align="left"> </td><td height="17" width="89" align="right"> 51,826 </td><td height="17" width="19" align="right"> </td><td height="17" width="12" align="left"> </td><td height="17" width="89" align="right"> 14,187 </td><td height="17" width="19" align="center"> </td><td height="17" width="96" align="center">10 </td></tr><tr><td height="17" width="310" align="left">Customer contracts and re lated relationships</td><td height="17" width="12" align="left"> </td><td height="17" width="89" align="right"> 45,897 </td><td height="17" width="19" align="right"> </td><td height="17" width="12" align="left"> </td><td height="17" width="89" align="right"> 11,549 </td><td height="17" width="19" align="center"> </td><td height="17" width="96" align="center">11 </td></tr><tr><td height="17" width="310" align="left">Trade names</td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="89"> 1,502 </td><td height="17" width="19" align="right"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="12">&am p;#160;</td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="89"> 658 </td><td height="17" width="19" align="center"> </td><td height="17" width="96" align="center">7 </td></tr><tr><td height="18" width="310" align="left">Total intangibles</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="89"> 118,795 </td><td height="18" width="19" align="right"> </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="89"> 32,693 </td>&l t;td height="18" width="19" align="center"> </td><td height="18" width="96" align="center">10 </td></tr></table>Amortization expense for amortized intangible assets was $3.2 million and $1.6 million for the three months ended July 3, 2010 and June 27, 2009, respectively. Annual amortization expense is expected to approximate $11.7 million for fiscal year 2011, $11.2 million for fiscal year 2012, $11.1 million for fiscal year 2013, $10.8 million for fiscal year 2014, and $9.6 million for fiscal year 2015.In addition to the acquisition of SEBRA, Neoteric, and Global Med discussed above, changes to the net carrying value of our intangible assets from April 3, 2010 to July 3, 2010, reflect the capitalization of software costs associated with our devices and software products (see Note 16), amortization expense and the effect of exchange rate changes in the translation of our intangible assets held by our international subsidiaries.&l t;/p></div> <div style="font-size:12pt">10.                DERIVATIVES AND FAIR VALUE MEASUREMENTS We manufacture, market and sell our products globally. Approximately 51% of our sales are generated outside the U.S. in local currencies. We also incur certain manufacturing, marketing and selling costs in international markets in local currency. Accordingly, our earnings and cash flows are exposed to market risk from changes in foreign currency exchange rates relative to the U.S. dollar, our reporting currency. We have a program in place that is designed to mitigate our exposure to changes in foreign currency exchange rates. That program includes the use of derivative financial instruments to minimize for a period of time, the unforeseen impact on our financial results from changes in foreign exchange rates. We utilize forward foreign currency contracts to hedge the anticipated cash flows from transactions denominated in foreign currencies, primarily the Japanese Yen and the Euro, and to lesser extent the British Pound Sterling and the Canadian Dollar. This does not eliminate the volatility of foreign exchange rates, but because we generally enter into forward contracts one year out, rates are fixed for a one-year period, thereby facilitating financial planning and resource allocation. Designated Foreign Currency Hedge Contracts All of our designated foreign currency hedge contracts as of July 3, 2010 and April 3, 2010 were cash flow hedges under ASC Topic 815, Derivatives and Hedging. We record the effective portion of any change in the fair value of designated foreign currency hedge contracts in Other Comprehensive Income in the Statement of Stockholders’ Equity until the related third-party transaction occurs. Once the related third-party transaction occurs, we reclassify the effective portion of any related gain or loss on the designated foreign currency hedge contracts to earnings. In the event the hedged forecasted transaction does not occur, or it becomes probable that it will not occur, we would reclassify the amount of any gain or loss on the related cash flow hedge to earnings at that time. We had designated foreign currency hedge contracts outstanding in the contract amount of $139.5 million as of July 3, 2010 and $135.4 million as of April 3, 2010. During the first quarter of fiscal year 2011, we recognized net gains of $0.0 million in earnings on our cash flow hedges. All currency cash flow hedges outstanding as of July 3, 2010 mature within twelve months. For the quarter ended July 3, 2010, $0.9 million of gains, net of tax, were recorded in Other Comprehensive Income to recognize the effective portion of the fair value of any desig nated foreign currency hedge contracts that are, or previously were, designated as foreign currency cash flow hedges, as compared to net losses of $1.0 million as of June 27, 2009. At July 3, 2010, $0.5 million of losses, net of tax, may be reclassified to earnings within the next twelve months.Non-designated Foreign Currency Contracts We manage our exposure to changes in foreign currency on a consolidated basis to take advantage of offsetting transactions and balances. We use currency forward contracts as a part of our strategy to manage exposure related to foreign currency denominated monetary assets and liabilities. These currency forward contracts are not designated as cash flow or fair value hedges under ASC Topic 815. These forward contracts are marked-to-market with changes in fair value recorded to earnings; and are entered into for periods consistent with currency transaction exposures, generally one month. We had non-designated foreign currency hedge cont racts under ASC Topic 815 outstanding in the contract amount of $27.4 million as of July 3, 2010 and $29.6 million as of April 3, 2010.Fair Value of Derivative Instruments The following table presents the effect of our derivative instruments designated as cash flow hedges and those not designated as hedging instruments under ASC Topic 815 in our consolidated statement of income for the three months ended July 3, 2010.<table style="border-collapse: collapse; margin-top: 20px;"><tr><td height="15" width="250" align="left"> </td><td width="94" align="center" height="15" colspan="2"> </td><td width="94" align="center" height="15" colspan="2">Amount of Loss</td><td height="15" width="82" align="center"> </td><td width="87" align="center" height="15" colspan="2"> </td><td height="15" width="82" align="center"> </td></tr><tr> <td height="15" width="250" align="left"> </td><td width="94" align="center" height="15" colspan="2">Amount of Loss</td><td width="94" align="center" height="15" colspan="2">Reclassified</td><td height="15" width="82" align="center"> </td><td width="87" align="center" height="15" colspan="2"> Amount</td><td height="15" width="82" align="center"> </td></tr><tr><td height="15" width="250" align="left"> </td><td width="94" align="center" height="15" colspan="2">Recognized</td><td width="94" align="center" height="15" colspan="2">from OCI into</td><td height="15" width="82" align="center">Location in</td><td width="87" align="center" height="15" colspan="2"> Excluded from</td><td height="15" width="82" align="center">Location in</td></tr><tr><td height="15" width="250" align="left">&# 160;</td><td width="94" align="center" height="15" colspan="2">in OCI</td><td width="94" align="center" height="15" colspan="2">Earnings</td><td height="15" width="82" align="center">Statement of</td><td width="87" align="center" height="15" colspan="2">Effectiveness</td><td height="15" width="82" align="center">Statement of</td></tr><tr><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="250">Derivative Instruments</td><td width="94" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="17">(Effective Portion)</td><td width="94" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="17">(Effective Portion)</td><td height="17" style="border-bottom: 1px solid #000000;" align="center" width="82">Operations</td><td width="87" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="17">Testin g (*)</td><td height="17" style="border-bottom: 1px solid #000000;" align="center" width="82">Operations</td></tr><tr><td height="15" style="border-top: 1px solid #000000;" align="left" width="250">(in thousands)</td><td height="15" style="border-top: 1px solid #000000;" align="left" width="12"> </td><td height="15" style="border-top: 1px solid #000000;" align="right" width="82"> </td><td height="15" style="border-top: 1px solid #000000;" align="left" width="12"> </td><td height="15" style="border-top: 1px solid #000000;" align="right" width="82"> </td><td height="15" style="border-top: 1px solid #000000;" align="left" width="82">  </td><td height="15" style="border-top: 1px solid #000000;" align="left" width="12"> </td><td height="15" style="border-top: 1px solid # 000000;" align="right" width="75"> </td><td height="15" style="border-top: 1px solid #000000;" align="left" width="82">  </td></tr><tr><td height="15" width="250" align="left">Designated foreign currency hedge contracts </td><td height="15" width="12" align="left">$</td><td height="15" width="82" align="right"> (450)</td><td height="15" width="12" align="left">$</td><td height="15" width="82" align="right"> 31 </td><td height="15" width="82" align="center">Net revenues</td><td height="15" width="12" align="left">$</td><td height="15" width="75" align="right"> 27 </td><td height="15" width="82" align="center">Other income</td></tr><tr><td height="15" width="250" align="left">Non-designated foreign currency hedge contracts </td><td height="15" style="border-bottom: 1px solid #000000; " align="left" width="12"> </td><td height="15" style="border-bottom: 1px solid #000000;" align="right" width="82"> - </td><td height="15" style="border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="15" style="border-bottom: 1px solid #000000;" align="right" width="82"> - </td><td height="15" width="82" align="center"> </td><td height="15" style="border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="15" style="border-bottom: 1px solid #000000;" align="right" width="75"> (124)</td><td height="15" width="82" align="center">Other expense</td></tr><tr><td height="16" width="250" align="left">  </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="16" style="border-top : 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="82"> (450)</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="82"> 31 </td><td height="16" width="82" align="right">  </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="75"> (97)</td><td height="16" width="82" align="right">  </td></tr><tr><td height="16" width="250" align="left"> </td><td height="16" style="border-top: 3px double #000000;" align="left" width="12"> </td><td height="16" style="border-top: 3px double #000000;" align="left" width="82"> </td><td height="16" style="border-top: 3px double #000000;" align="left" width="12"> </td><td height="16" style="border-top: 3px double #000000;" align="left" width="82"> </td><td height="16" width="82" align="left"> </td><td height="16" style="border-top: 3px double #000000;" align="left" width="12"> </td><td height="16" style="border-top: 3px double #000000;" align="left" width="75"> </td><td height="16" width="82" align="left"> </td></tr><tr><td width="689" align="left" height="15" colspan="9">(*) We exclude the difference between the spot rate and hedge forward rate from our effectiveness testing.</td></tr><tr><td height="16" width="250" align="left"> </td><td height="16" width="12" align="left"> </td><td height="16" w idth="82" align="left"> </td><td height="16" width="12" align="left"> </td><td height="16" width="82" align="left"> </td><td height="16" width="82" align="left"> </td><td height="16" width="12" align="left"> </td><td height="16" width="75" align="left"> </td><td height="16" width="82" align="left"> </td></tr><tr><td height="15" width="250" align="left"> </td><td height="15" width="12" align="left"> </td><td height="15" width="82" align="left"> </td><td height="15" width="12" align="left"> </td><td height="15" width="82" align="left"> </td><td height="15" width="82" align="left"> </td><td height="15" width="12" align="left"> </td><td height="15" width="75" align="left"> </td><td height="1 5" width="82" align="left"> </td></tr><tr><td width="689" align="left" height="17" colspan="9">We did not have fair value hedges or net investment hedges outstanding as of July 3, 2010 or April 3, 2010.</td></tr></table>ASC Topic 815 requires all derivative instruments to be recognized at their fair values as either assets or liabilities on the balance sheet. We determine the fair value of our derivative instruments using the framework prescribed by ASC Topic 820, Fair Value Measurements and Disclosures, by considering the estimated amount we would receive or pay to sell or transfer these instruments at the reporting date and by taking into account current interest rates, currency exchange rates, the creditworthiness of the counterparty for assets, and our creditworthiness for liabilities.  In certain instances, we may utilize financial models to measure fair value. Generally, we use inputs that include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; other observable inputs for the asset or liability; and inputs derived principally from, or corroborated by, observable market data by correlation or other means. As of July 3, 2010, we have classified our derivative assets and liabilities within Level 2 of the fair value hierarchy prescribed by ASC Topic 815, as discussed below, because these observable inputs are available for substantially the full term of our derivative instruments.<table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="715" align="left" height="17" colspan="10">The following tables present the fair value of our derivative instruments as they appear in our consolidated balance</td></tr><tr><td width="715" align="left" height="17" colspan="10">sheets as of July 3, 2010 by type of contract and whether it is a qualifying hedge under ASC Topic 8 15.</td></tr><tr><td height="17" width="264" align="left"> </td><td height="17" width="12" align="left"> </td><td height="17" width="145" align="left"> </td><td height="17" width="12" align="left"> </td><td height="17" width="12" align="left"> </td><td height="17" width="103" align="left"> </td><td height="17" width="12" align="left"> </td><td height="17" width="12" align="left"> </td><td height="17" width="96" align="left"> </td><td height="17" width="47" align="left"> </td></tr><tr><td height="17" width="264" align="left"> </td><td height="17" width="12" align="left"> </td><td height="17" width="145" align="center">Location in</td><td height="17" width="12" align="center">&a mp;#160;</td><td width="115" align="center" height="17" colspan="2">Balance as of</td><td height="17" width="12" align="center"> </td><td width="108" align="center" height="17" colspan="2">Balance as of</td><td height="17" width="47" align="left"> </td></tr><tr><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="264">(in thousands)</td><td height="17" width="12" align="left"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="center" width="145">Balance Sheet</td><td height="17" width="12" align="center"> </td><td width="115" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="17">July 3, 2010</td><td height="17" width="12" align="center"> </td><td width="108" align="center" colspan="2" style="border-bottom: 1px solid # 000000;" height="17">April 3, 2010</td><td height="17" width="47" align="left"> </td></tr><tr><td height="17" style="border-top: 1px solid #000000;" align="left" width="264">  </td><td height="17" width="12" align="left"> </td><td height="17" style="border-top: 1px solid #000000;" align="left" width="145">  </td><td height="17" width="12" align="left"> </td><td height="17" style="border-top: 1px solid #000000;" align="left" width="12"> </td><td height="17" style="border-top: 1px solid #000000;" align="right" width="103"> </td><td height="17" width="12" align="right"> </td><td height="17" style="border-top: 1px solid #000000;" align="left" width="12"> </td><td height="17" style="border-top: 1px solid #000000;" align="right" width="96"> </td><td height="17" width="47" align="left" > </td></tr><tr><td height="17" width="264" align="left">Derivative Assets:</td><td height="17" width="12" align="left"> </td><td height="17" width="145" align="left">  </td><td height="17" width="12" align="left"> </td><td height="17" width="12" align="left"> </td><td height="17" width="103" align="right"> </td><td height="17" width="12" align="right"> </td><td height="17" width="12" align="left"> </td><td height="17" width="96" align="right"> </td><td height="17" width="47" align="left"> </td></tr><tr><td height="17" width="264" align="left">Designated foreign currency hedge contracts </td><td height="17" width="12" align="left"> </td><td height="17" width="145" align="center">Other current a ssets</td><td height="17" width="12" align="center"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="12">$</td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="103"> 5,433 </td><td height="17" width="12" align="right"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="12">$</td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="96"> 4,407 </td><td height="17" width="47" align="left"> </td></tr><tr><td height="18" width="264" align="left">  </td><td height="18" width="12" align="left"> </td><td height="18" width="145" align="left">  </td><td height="18" width="12" align="left"> </td><td height="18" style="border-top: 1px solid #000000;bor der-bottom: 3px double #000000;" align="left" width="12">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="103"> 5,433 </td><td height="18" width="12" align="right"> </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="96"> 4,407 </td><td height="18" width="47" align="left"> </td></tr><tr><td height="18" width="264" align="left">  </td><td height="18" width="12" align="left"> </td><td height="18" width="145" align="left">  </td><td height="18" width="12" align="left"> </td><td height="18" sty le="border-top: 3px double #000000;" align="left" width="12"> </td><td height="18" style="border-top: 3px double #000000;" align="right" width="103"> </td><td height="18" width="12" align="right"> </td><td height="18" style="border-top: 3px double #000000;" align="left" width="12"> </td><td height="18" style="border-top: 3px double #000000;" align="right" width="96"> </td><td height="18" width="47" align="left"> </td></tr><tr><td height="17" width="264" align="left">Derivative Liabilities:</td><td height="17" width="12" align="left"> </td><td height="17" width="145" align="left">  </td><td height="17" width="12" align="left"> </td><td height="17" width="12" align="left"> </td><td height="17" width="103" align="right"> </td> <td height="17" width="12" align="right"> </td><td height="17" width="12" align="left"> </td><td height="17" width="96" align="right"> </td><td height="17" width="47" align="left"> </td></tr><tr><td height="17" width="264" align="left">Designated foreign currency hedge contracts </td><td height="17" width="12" align="left"> </td><td height="17" width="145" align="center">Other accrued liabilities</td><td height="17" width="12" align="center"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="12">$</td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="103"> 2,109 </td><td height="17" width="12" align="right"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="12">$</td><td height=" 17" style="border-bottom: 1px solid #000000;" align="right" width="96"> 1,747 </td><td height="17" width="47" align="left"> </td></tr><tr><td height="18" width="264" align="left">  </td><td height="18" width="12" align="left"> </td><td height="18" width="145" align="left">  </td><td height="18" width="12" align="left"> </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="103"> 2,109 </td><td height="18" width="12" align="right"> </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="18" style="bo rder-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="96"> 1,747 </td><td height="18" width="47" align="left"> </td></tr></table>Other Fair Value Measurements ASC Topic 820, Fair Value Measurements and Disclosures defines fair value, establishes a framework for measuring fair value in accordance with U.S. GAAP, and expands disclosures about fair value measurements. ASC Topic 820 does not require any new fair value measurements; rather, it applies to other accounting pronouncements that require or permit fair value measurements. In accordance with ASC Topic 820, for the three months ended July 3, 2010, we applied the requirements under ASC Topic 820 to our non-financial assets and non-financial liabilities. As we did not have an impairment of any non-financial assets or non-financial liabilities, there was no disclosure required relating to our non-financial assets o r non-financial liabilities. On a recurring basis, we measure certain financial assets and financial liabilities at fair value, including our money market funds, foreign currency derivative contracts, and contingent consideration. ASC Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. We base fair value upon quoted market prices, where available. Where quoted market prices or other observable inputs are not available, we apply valuation techniques to estimate fair value. ASC Topic 820 establishes a three-level valuation hierarchy for disclosure of fair value measurements. The categorization of assets and liabilities within the valuation hierarchy is based u pon the lowest level of input that is significant to the measurement of fair value. The three levels of the hierarchy are defined as follows: <ul><li>Level 1 – Inputs to the valuation methodology are quoted market prices for identical assets or liabilities. </li><li>Level 2 – Inputs to the valuation methodology are other observable inputs, including quoted market prices for similar assets or liabilities and market-corroborated inputs. </li><li>Level 3 – Inputs to the valuation methodology are unobservable inputs based on management’s best estimate of inputs market participants would use in pricing the asset or liability at the measurement date, including assumptions about risk. </li></ul>  Our money market funds carried at fair value are generally classified within Level 1 of the fair value hierarchy because they are v alued using quoted market prices. We recognize all derivative financial instruments in our consolidated financial statements at fair value in accordance with ASC Topic 815, Derivatives and Hedging.  We determine the fair value of these instruments using the framework prescribed by ASC Topic 820 by considering the estimated amount we would receive or pay to terminate these agreements at the reporting date and by taking into account current spot rates, the creditworthiness of the counterparty for assets, and our creditworthiness for liabilities. We have classified our foreign currency hedge contracts within Level 2 of the fair value hierarchy because these observable inputs are available for substantially the full term of our derivative instruments. For the quarter ended July 3, 2010, we have classified our other liabilities – contingent consideration relating to our acquisition of Neoteric within Level 3 of the fair value hierarchy because the value is deter mined using significant unobservable inputs.<table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="647" align="left" height="17" colspan="9">Fair Value Measured on a Recurring Basis</td><td height="17" width="64" align="left"> </td></tr><tr><td height="17" width="250" align="left"> </td><td height="17" width="12" align="left"> </td><td height="17" width="89" align="left"> </td><td height="17" width="12" align="left"> </td><td height="17" width="89" align="left"> </td><td height="17" width="12" align="left"> </td><td height="17" width="89" align="left"> </td><td height="17" width="12" align="left"> </td><td height="17" width="82" align="left"> </td><td height="17" width="64" align="left"> </td></ tr><tr><td width="711" align="left" height="17" colspan="10">Financial assets and financial liabilities measured at fair value on a recurring basis consist of the following as of </td></tr><tr><td height="17" width="250" align="left">July 3, 2010:</td><td height="17" width="12" align="left"> </td><td height="17" width="89" align="left"> </td><td height="17" width="12" align="left"> </td><td height="17" width="89" align="left"> </td><td height="17" width="12" align="left"> </td><td height="17" width="89" align="left"> </td><td height="17" width="12" align="left"> </td><td height="17" width="82" align="left"> </td><td height="17" width="64" align="left"> </td></tr><tr><td height="17" width="250" align="left"> </td><td width="101" align="center" height="17" colspan="2">Quoted Market</td><td width="101" align="center" height="17" colspan="2">Significant Other</td><td width="101" align="center" height="17" colspan="2">Significant</td><td height="17" width="12" align="left"> </td><td height="17" width="82" align="center"> </td><td height="17" width="64" align="left"> </td></tr><tr><td height="17" width="250" align="left"> </td><td width="101" align="center" height="17" colspan="2">Prices for</td><td width="101" align="center" height="17" colspan="2">Observable</td><td width="101" align="center" height="17" colspan="2">Unobservable</td><td height="17" width="12" align="left"> </td><td height="17" width="82" align="center"> </td><td height="17" width="64" align="left"> </td></tr><tr><td height="17" width="250" align ="left"> </td><td width="101" align="center" height="17" colspan="2">Identical Assets</td><td width="101" align="center" height="17" colspan="2">Inputs</td><td width="101" align="center" height="17" colspan="2">Inputs</td><td height="17" width="12" align="left"> </td><td height="17" width="82" align="center"> </td><td height="17" width="64" align="left"> </td></tr><tr><td height="17" width="250" align="left">(in thousands)</td><td width="101" align="center" height="17" colspan="2">(Level 1)</td><td width="101" align="center" height="17" colspan="2">(Level 2)</td><td width="101" align="center" height="17" colspan="2">(Level 3)</td><td width="94" align="center" height="17" colspan="2">Total</td><td height="17" width="64" align=" left"> </td></tr><tr><td height="17" width="250" align="left">Assets</td><td height="17" width="12" align="left"> </td><td height="17" width="89" align="left"> </td><td height="17" width="12" align="left"> </td><td height="17" width="89" align="left"> </td><td height="17" width="12" align="left"> </td><td height="17" width="89" align="left"> </td><td height="17" width="12" align="left"> </td><td height="17" width="82" align="left"> </td><td height="17" width="64" align="left"> </td></tr><tr><td height="17" width="250" align="left">Money market funds</td><td height="17" width="12" align="left">$</td><td height="17" width="89" align="right"> 55,328 </td><td height="17" width="12" align="left">$</td><td height="17" width="89" align="right"> - </td><td height="17" width="12" align="left">$</td><td height="17" width="89" align="right"> - </td><td height="17" width="12" align="left">$</td><td height="17" width="82" align="right"> 55,328 </td><td height="17" width="64" align="left"> </td></tr><tr><td height="17" width="250" align="left">Forward currency exchange contracts</td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="89"> - </td><td height="17" style="border-bottom: 1px solid #000000;" align="left " width="12"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="89"> 5,433 </td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="89"> - </td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="82"> 5,433 </td><td height="17" width="64" align="left"> </td></tr><tr><td height="18" width="250" align="left">  </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" wid th="89"> 55,328 </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="89"> 5,433 </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="89"> - </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="82"> 60,761 </td><td height="18" width="64" align="left"> </td></tr><tr><td height="18" width="250 " align="left">  </td><td height="18" style="border-top: 3px double #000000;" align="left" width="12"> </td><td height="18" style="border-top: 3px double #000000;" align="left" width="89"> </td><td height="18" style="border-top: 3px double #000000;" align="left" width="12"> </td><td height="18" style="border-top: 3px double #000000;" align="left" width="89"> </td><td height="18" style="border-top: 3px double #000000;" align="left" width="12"> </td><td height="18" style="border-top: 3px double #000000;" align="left" width="89"> </td><td height="18" style="border-top: 3px double #000000;" align="left" width="12"> </td><td height="18" style="border-top: 3px double #000000;" align="left" width="82"> </td><td height="18" width="64" align="left"> </td></tr><tr><td height="17" width="250" align="l eft">Liabilities</td><td height="17" width="12" align="left"> </td><td height="17" width="89" align="left"> </td><td height="17" width="12" align="left"> </td><td height="17" width="89" align="left"> </td><td height="17" width="12" align="left"> </td><td height="17" width="89" align="left"> </td><td height="17" width="12" align="left"> </td><td height="17" width="82" align="left"> </td><td height="17" width="64" align="left"> </td></tr><tr><td height="17" width="250" align="left">Forward currency exchange contracts</td><td height="17" width="12" align="left">$</td><td height="17" width="89 " align="right"> - </td><td height="17" width="12" align="left">$</td><td height="17" width="89" align="right"> 2,109 </td><td height="17" width="12" align="left">$</td><td height="17" width="89" align="right"> - </td><td height="17" width="12" align="left">$</td><td height="17" width="82" align="right"> 2,109 </td><td height="17" width="64" align="left"> </td></tr><tr><td height="17" width="250" align="left">Other liabilities - contingent consideration</td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="89"> - </td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="17" style ="border-bottom: 1px solid #000000;" align="right" width="89"> - </td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="89"> 4,087 </td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="82"> 4,087 </td><td height="17" width="64" align="left"> </td></tr><tr><td height="18" width="250" align="left">  </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="89"> - </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="89"> 2,109 </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="89"> 4,087 </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="82"> 6,196 </td><td height="18" width="64" align="left"> </td></tr></table>A description of the methods used to determine the fair value of the Level 3 li abilities (other liabilities – contingent consideration) is included within Note 9 – Goodwill, Other Intangible Assets, and Acquisitions. The table below provides a reconciliation of the beginning and ending Level 3 liabilities for the three months ended July 3, 2010.<table style="border-collapse: collapse; margin-top: 20px;"><tr><td height="17" width="387" align="left"> </td><td width="108" align="center" height="17" colspan="2">Fair Value</td></tr><tr><td height="17" width="387" align="left"> </td><td width="108" align="center" height="17" colspan="2">Measurements</td></tr><tr><td height="17" width="387" align="left"> </td><td width="108" align="center" height="17" colspan="2">Using Significant</td></tr><tr><td height="17" width="387" align="left"> </td><td width="108" align="center" height="17" colspan="2"& gt;Unobservable</td></tr><tr><td height="17" width="387" align="left"> </td><td width="108" align="center" height="17" colspan="2">Inputs</td></tr><tr><td height="17" width="387" align="left">(in thousands)</td><td width="108" align="center" height="17" colspan="2">(Level 3)</td></tr><tr><td height="17" width="387" align="left"> </td><td height="17" width="12" align="left"> </td><td height="17" width="96" align="right"> </td></tr><tr><td height="17" width="387" align="left">Beginning balance</td><td height="17" width="12" align="left">$</td><td height="17" width="96" align="right"> 4,101 </td></tr><tr><td height="17" width="387" align="left">Accretion of interest expense on contingent consideration</td><td height="17" width="12" align="left"> </td><td height="17" width="96" align="right"> 165 </td></tr><tr><td height="17" width="387" align="left">Change in value</td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="96"> (179)</td></tr><tr><td height="18" width="387" align="left">Ending balance</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="96"> 4,087 </td></tr></table>Other Fair Value Disclosures The fair value of our long-term debt obligations was $4.9 million and $5.1 million at July 3, 2010 and April 3, 2010, respectively. </div>

<div style="font-size:12pt">11.                INCOME TAXESOur reported tax rate includes two principal components: an expected effective annual tax rate and discrete items resulting in additional provisions or benefits that are recorded in the quarter that an event arises or is resolved. Events or items that give rise to discrete recognition include finalizing audit examinations for open tax years, a statute of limitation’s expiration, or a change in the statutory tax rate. The calculated tax rate is without any benefit from the research and development credit that could later become valid for our fiscal year 2011. The reported tax rate was 26.5% for the three month period ended July 3, 2010. The reported tax rate inc ludes: •         A 29.8% expected effective annual tax rate which reflects tax benefits from foreign taxes (including our Swiss principal) and a domestic manufacturing deduction, offset in part by the state income tax provision and stock compensation expenses not deductible in all jurisdictions; and The following net discrete item: <ul><li>A $0.8 million benefit from the finalization of our tax status as a principal in Switzerland. </li></ul>The reported tax rate was 30.3% for the three month period ended June 27, 2009. The reported tax rate includes: • A 31.1% expected effective annual tax rate which reflects tax benefits from foreign taxes (including our Swiss principal) and a domestic manufacturing deduction, offset in part by the state tax provision, and stock compensation expenses not deductible in all j urisdictions; and <ul><li>A $0.2 million benefit from the remittance of Japanese earnings.</li></ul>We conduct business globally and, as a result, file consolidated federal, consolidated and separate state and foreign income tax returns in multiple jurisdictions. In the normal course of business, we are subject to examination by taxing authorities throughout the world in jurisdictions including the U.S., Japan, Germany, France, the United Kingdom, and Switzerland. With few exceptions, we are no longer subject to U.S. federal, state and local, or foreign income tax examinations for years before 2007.</div>

<div style="font-size:12pt">12.  COMMITMENTS AND CONTINGENCIES We are presently engaged in various legal actions, and although ultimate liability cannot be determined at the present time, we believe, based on consultation with counsel, that any such liability will not materially affect our consolidated financial position or our results of operations.</div>

<div style="font-size:12pt">13. DEFINED BENEFIT PENSION PLANS Certain of the Company’s foreign subsidiaries have defined benefit pension plans covering substantially all full time employees at those subsidiaries. Net periodic benefit costs for the plans in the aggregate include the following components:<table style="border-collapse: collapse; margin-top: 20px;"><tr><td height="17" width="26" align="left"> </td><td height="17" width="373" align="left"> </td><td height="17" width="19" align="left"> </td><td width="235" align="center" colspan="5" style="border-bottom: 1px solid #000000;" height="17">For the three months ended</td></tr><tr><td height="17" width="26" align="left"> </td><td height="17" width="373" align="l eft"> </td><td height="17" width="19" align="left"> </td><td width="108" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="17">July 3, 2010</td><td height="17" style="border-top: 1px solid #000000;" align="center" width="19"> </td><td width="108" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="17">June 27, 2009</td></tr><tr><td height="17" width="26" align="left"> </td><td height="17" width="373" align="left"> </td><td height="17" width="19" align="left"> </td><td height="17" style="border-top: 1px solid #000000;" align="left" width="12"> </td><td width="223" align="center" colspan="4" style="border-top: 1px solid #000000;" height="17">(in thousands)</td></tr><tr><td width="399" align="left" height="17" colspan="2">Service cost</td><td height="17" width="19" align="left"> </td><td height="17" width="12" align="left">$</td><td height="17" width="96" align="right"> 152 </td><td height="17" width="19" align="right"> </td><td height="17" width="12" align="left">$</td><td height="17" width="96" align="right"> 124 </td></tr><tr><td width="399" align="left" height="17" colspan="2">Interest cost on benefit obligation</td><td height="17" width="19" align="left"> </td><td height="17" width="12" align="right"> </td><td height="17" width="96" align="right"> 66 </td><td height="17" width="19" align="right"> </td><td height="17" width="12" align="right"> </td><td height="17" width="96" align="right"> 61 </td>&l t;/tr><tr><td width="399" align="left" height="17" colspan="2">Expected return on plan assets</td><td height="17" width="19" align="left"> </td><td height="17" width="12" align="right"> </td><td height="17" width="96" align="right"> 19 </td><td height="17" width="19" align="right"> </td><td height="17" width="12" align="right"> </td><td height="17" width="96" align="right"> (15)</td></tr><tr><td width="399" align="left" height="17" colspan="2">Amortization of unrecognized prior service cost, unrecognized</td><td height="17" width="19" align="left"> </td><td height="17" width="12" align="right"> </td><td height="17" width="96" align="right"> </td><td height="17" width="19" align="right"> </td><td height="17" width="12" align="right"> & lt;/td><td height="17" width="96" align="right"> </td></tr><tr><td height="17" width="26" align="left"> </td><td height="17" width="373" align="left">gain and unrecognized initial obligation</td><td height="17" width="19" align="left"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="12"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="96"> (4)</td><td height="17" width="19" align="right"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="12"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="96"> (10)</td></tr><tr><td width="399" align="left" height="18" colspan="2">Net periodic benefit cost</td><td height="18" width="19" align="left"> </ td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="96"> 233 </td><td height="18" width="19" align="right"> </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="96"> 160 </td></tr></table></div>

<div style="font-size:12pt">14. SEGMENT INFORMATION Segment Definition Criteria We manage our business on the basis of one operating segment: the design, manufacture, and marketing of blood management solutions. Our chief operating decision-maker uses consolidated results to make operating and strategic decisions. Manufacturing processes, as well as the regulatory environment in which we operate, are largely the same for all product lines.Enterprise Wide Disclosures about Product and Services We have four global product families: plasma, blood bank, hospital, and software solutions. Disposables include the plasma, blood bank, and hospital product families. Plasma consists of the disposables used to perform apheresis for the separation of whole blood components and subsequent collection of p lasma to be used as a raw material for biologically derived pharmaceuticals (also known as source plasma). Blood bank consists of disposables which separate whole blood for the subsequent collection of platelets, plasma, red cells, or a combination of these components for transfusion to patients. Hospital consists of surgical disposables (principally the Cell Saver® autologous blood recovery system targeted to procedures that involve rapid, high volume blood loss such as cardiovascular surgeries and cardioPAT® cardiovascular perioperative autotransfusion system designed to remain with the patient following surgery to recover blood and the patient’s red cells to prepare them for reinfusion), the OrthoPAT® orthopedic perioperative autotransfusion system designed to operate both during and after surgery to recover and wash the patient’s red cells to prepare them for reinfusion, and diagnostics products (principally the TEG® Thrombelastograph® he mostasis analyzer used to help assess a surgical patient’s hemostasis (blood clotting ability) during and after surgery). Software solutions include information technology platforms that assist blood banks, plasma centers, and hospitals to more effectively manage regulatory compliance and operational efficiency.<table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="583" align="left" height="17" colspan="8">Revenues from External Customers:</td></tr><tr><td height="17" width="26" align="left"> </td><td height="17" width="26" align="left"> </td><td height="17" width="296" align="left"> </td><td width="235" align="center" colspan="5" style="border-bottom: 1px solid #000000;" height="17">Three Months Ended</td></tr><tr><td height="17" width="26" align="left"> </td><td height="17" width="26" align="left"> ; </td><td height="17" width="296" align="left"> </td><td width="108" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="17">July 3, 2010</td><td height="17" style="border-top: 1px solid #000000;" align="center" width="19"> </td><td width="108" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="17">June 27, 2009</td></tr><tr><td height="17" width="26" align="left"> </td><td height="17" width="26" align="left"> </td><td height="17" width="296" align="left"> </td><td height="17" style="border-top: 1px solid #000000;" align="left" width="12"> </td><td width="223" align="center" colspan="4" style="border-top: 1px solid #000000;" height="17">(in thousands)</td></tr><tr><td width="348" align="left" heigh t="17" colspan="3">Disposable revenues</td><td height="17" width="12" align="left"> </td><td height="17" width="96" align="right"> </td><td height="17" width="19" align="right"> </td><td height="17" width="12" align="right"> </td><td height="17" width="96" align="right"> </td></tr><tr><td height="17" width="26" align="left"> </td><td width="322" align="left" height="17" colspan="2">Plasma disposables</td><td height="17" width="12" align="left">$</td><td height="17" width="96" align="right"> 55,918 </td><td height="17" width="19" align="right"> </td><td height="17" width="12" align="left">$</td><td height="17" width="96" align="right"> 58,868 </td></tr><tr><td height="17" width="26" align="left"> </td><td height="1 7" width="26" align="left"> </td><td height="17" width="296" align="left"> </td><td height="17" width="12" align="left"> </td><td height="17" width="96" align="right"> </td><td height="17" width="19" align="right"> </td><td height="17" width="12" align="left"> </td><td height="17" width="96" align="right"> </td></tr><tr><td height="17" width="26" align="left"> </td><td width="322" align="left" height="17" colspan="2">Blood bank disposables</td><td height="17" width="12" align="left"> </td><td height="17" width="96" align="right"> </td><td height="17" width="19" align="right"> </td><td height="17" width="12" align="left"> </td><td height="17" width="96" align="right"> </td></tr><tr><td height="17" width="2 6" align="left"> </td><td height="17" width="26" align="left"> </td><td height="17" width="296" align="left">Platelet</td><td height="17" width="12" align="left"> </td><td height="17" width="96" align="right"> 36,317 </td><td height="17" width="19" align="right"> </td><td height="17" width="12" align="left"> </td><td height="17" width="96" align="right"> 34,306 </td></tr><tr><td height="17" width="26" align="left"> </td><td height="17" width="26" align="left"> </td><td height="17" width="296" align="left">Red cell</td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="96"> 11,314 </td><td height="17" width ="19" align="right"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="96"> 11,779 </td></tr><tr><td height="17" width="26" align="left"> </td><td height="17" width="26" align="left"> </td><td height="17" width="296" align="left"> </td><td height="17" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="17" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="right" width="96"> 47,631 </td><td height="17" width="19" align="right"> </td><td height="17" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="17" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="right" width="96"> 46,085 </td></tr><tr><td height="17" width="26" align="left"> </td><td width="322" align="left" height="17" colspan="2">Hospital disposables</td><td height="17" style="border-top: 1px solid #000000;" align="left" width="12"> </td><td height="17" style="border-top: 1px solid #000000;" align="right" width="96"> </td><td height="17" width="19" align="right"> </td><td height="17" style="border-top: 1px solid #000000;" align="left" width="12"> </td><td height="17" style="border-top: 1px solid #000000;" align="right" width="96"> </td></tr><tr><td height="17" width="26" align="left"> </td><td height="17" width="26" align="left"> </td><td height="17" width="296" align="left">Surgical< /td><td height="17" width="12" align="left"> </td><td height="17" width="96" align="right"> 16,351 </td><td height="17" width="19" align="right"> </td><td height="17" width="12" align="left"> </td><td height="17" width="96" align="right"> 17,425 </td></tr><tr><td height="17" width="26" align="left"> </td><td height="17" width="26" align="left"> </td><td height="17" width="296" align="left">OrthoPAT</td><td height="17" width="12" align="left"> </td><td height="17" width="96" align="right"> 8,957 </td><td height="17" width="19" align="right"> </td><td height="17" width="12" align="left"> </td><td height="17" width="96" align="right"> 8,584 </td></tr><tr><td height="17" width="26" align= "left"> </td><td height="17" width="26" align="left"> </td><td height="17" width="296" align="left">Diagnostics</td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="96"> 4,708 </td><td height="17" width="19" align="right"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="96"> 3,811 </td></tr><tr><td height="17" width="26" align="left"> </td><td height="17" width="26" align="left"> </td><td height="17" width="296" align="left"> </td><td height="17" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align= "left" width="12"> </td><td height="17" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="right" width="96"> 30,016 </td><td height="17" width="19" align="right"> </td><td height="17" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="17" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="right" width="96"> 29,820 </td></tr><tr><td height="17" width="26" align="left"> </td><td height="17" width="26" align="left"> </td><td height="17" width="296" align="left"> </td><td height="17" style="border-top: 1px solid #000000;" align="left" width="12"> </td><td height="17" style="border-top: 1px solid #000000;" align="right" width="96"> </td><td height="17" width=" 19" align="right"> </td><td height="17" style="border-top: 1px solid #000000;" align="left" width="12"> </td><td height="17" style="border-top: 1px solid #000000;" align="right" width="96"> </td></tr><tr><td width="348" align="left" height="17" colspan="3">Disposables revenue</td><td height="17" width="12" align="left"> </td><td height="17" width="96" align="right"> 133,565 </td><td height="17" width="19" align="right"> </td><td height="17" width="12" align="left"> </td><td height="17" width="96" align="right"> 134,773 </td></tr><tr><td height="17" width="26" align="left"> </td><td height="17" width="26" align="left"> </td><td height="17" width="296" align="left"> </td><td height="17" width="12" align="left"> </td ><td height="17" width="96" align="right"> </td><td height="17" width="19" align="right"> </td><td height="17" width="12" align="left"> </td><td height="17" width="96" align="right"> </td></tr><tr><td width="348" align="left" height="17" colspan="3">Software solutions</td><td height="17" width="12" align="left"> </td><td height="17" width="96" align="right"> 16,453 </td><td height="17" width="19" align="right"> </td><td height="17" width="12" align="left"> </td><td height="17" width="96" align="right"> 8,454 </td></tr><tr><td width="348" align="left" height="17" colspan="3">Equipment & other</td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="96"> 13,021 </td><td height="17" width="19" align="right"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="96"> 10,860 </td></tr><tr><td width="348" align="left" height="18" colspan="3">Total revenues</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="96"> 163,039 </td><td height="18" width="19" align="right"> </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="18" style="border-top: 1px soli d #000000;border-bottom: 3px double #000000;" align="right" width="96"> 154,087 </td></tr></table></div>

<div style="font-size:12pt">15. REORGANIZATION On April 1, 2010, our Board of Directors approved transformation and restructuring plans, which include the integration of Global Med Technologies, Inc. In fiscal year 2011, we expect to incur additional cash restructuring costs of $6.4 million for employee matters and facility closures. We also expect to incur $1.5 million of integration costs. The following summarizes the restructuring activity for the three months ended July 3, 2010 and June 27, 2009, respectively:<table style="border-collapse: collapse; margin-top: 20px;"><tr><td height="15" width="159" align="left">(Dollars in thousands)</td><td height="15" width="12" align="left"> </td><td width="476" align="center" height="15" colspan="14">Three Months Ended July 3 , 2010</td></tr><tr><td height="15" width="159" align="left"> </td><td height="15" width="12" align="left"> </td><td height="15" width="12" align="left"> </td><td height="15" width="75" align="center"> </td><td height="15" width="12" align="center"> </td><td height="15" width="12" align="left"> </td><td height="15" width="68" align="center"> </td><td height="15" width="12" align="center"> </td><td height="15" width="12" align="left"> </td><td height="15" width="68" align="center"> </td><td height="15" width="12" align="center"> </td><td height="15" width="12" align="left"> </td><td height="15" width="68" align="center"> </td><td height="15" width="12" align="center"> </td><td width="101" align="cent er" height="15" colspan="2">Restructuring</td></tr><tr><td height="15" width="159" align="left"> </td><td height="15" width="12" align="left"> </td><td height="15" width="12" align="left"> </td><td height="15" width="75" align="center"> </td><td height="15" width="12" align="center"> </td><td height="15" width="12" align="left"> </td><td height="15" width="68" align="center"> </td><td height="15" width="12" align="center"> </td><td height="15" width="12" align="left"> </td><td height="15" width="68" align="center"> </td><td height="15" width="12" align="center"> </td><td height="15" width="12" align="left"> </td><td height="15" width="68" align="center"> </td><td height="15" width="12" align="center"> < ;/td><td width="101" align="center" height="15" colspan="2">Accrual</td></tr><tr><td height="15" width="159" align="left"> </td><td height="15" width="12" align="left"> </td><td width="87" align="center" height="15" colspan="2">Balance at</td><td height="15" width="12" align="center"> </td><td width="80" align="left" height="15" colspan="2"> </td><td height="15" width="12" align="center"> </td><td width="80" align="left" height="15" colspan="2"> </td><td height="15" width="12" align="center"> </td><td width="80" align="center" height="15" colspan="2">Asset</td><td height="15" width="12" align="center"> </td><td width="101" align="center" height="15" colspan="2">Balance at</td></tr><tr><td height="15" width="159" align="left"> </td><td height="15" width="12" align="left"> </td><td width="87" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="15">April 3, 2010</td><td height="15" width="12" align="center"> </td><td width="80" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="15">Cost Incurred</td><td height="15" width="12" align="center"> </td><td width="80" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="15">Payments</td><td height="15" width="12" align="center"> </td><td width="80" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="15">Write down</td><td height="15" width="12" align="center"> </td><td width="101" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="15">July 3, 2010</td></tr><tr><td height="15" width="159" align="left">&#16 0;</td><td height="15" width="12" align="left"> </td><td height="15" style="border-top: 1px solid #000000;" align="left" width="12"> </td><td height="15" style="border-top: 1px solid #000000;" align="left" width="75"> </td><td height="15" width="12" align="left"> </td><td height="15" style="border-top: 1px solid #000000;" align="left" width="12"> </td><td height="15" style="border-top: 1px solid #000000;" align="left" width="68"> </td><td height="15" width="12" align="left"> </td><td height="15" style="border-top: 1px solid #000000;" align="left" width="12"> </td><td height="15" style="border-top: 1px solid #000000;" align="left" width="68"> </td><td height="15" width="12" align="left"> </td><td height="15" style="border-top: 1px solid #000000;" align="left" width="12"> </td> <td height="15" style="border-top: 1px solid #000000;" align="left" width="68"> </td><td height="15" width="12" align="left"> </td><td height="15" style="border-top: 1px solid #000000;" align="left" width="12"> </td><td height="15" style="border-top: 1px solid #000000;" align="left" width="89"> </td></tr><tr><td height="15" width="159" align="left">Employee-related costs</td><td height="15" width="12" align="left"> </td><td height="15" width="12" align="left">$</td><td height="15" width="75" align="right"> 9,761 </td><td height="15" width="12" align="right"> </td><td height="15" width="12" align="left">$</td><td height="15" width="68" align="right"> 1,245 </td><td height="15" width="12" align="right"> </td><td height="15" width="12" align="left">$</ td><td height="15" width="68" align="right"> (2,899)</td><td height="15" width="12" align="right"> </td><td height="15" width="12" align="left">$</td><td height="15" width="68" align="right"> - </td><td height="15" width="12" align="right"> </td><td height="15" width="12" align="left">$</td><td height="15" width="89" align="right"> 8,107 </td></tr><tr><td height="16" width="159" align="left"> </td><td height="16" width="12" align="left"> </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="75"> 9,761 </td><td height="16" width="12" align="right"> </td><td height="16 " style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="68"> 1,245 </td><td height="16" width="12" align="right"> </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="68"> (2,899)</td><td height="16" width="12" align="right"> </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="68"> - </td><td height="16" width="12" align="right">&#16 0;</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="89"> 8,107 </td></tr><tr><td height="16" width="159" align="left"> </td><td height="16" width="12" align="left"> </td><td height="16" style="border-top: 3px double #000000;" align="left" width="12"> </td><td height="16" style="border-top: 3px double #000000;" align="left" width="75"> </td><td height="16" width="12" align="left"> </td><td height="16" style="border-top: 3px double #000000;" align="left" width="12"> </td><td height="16" style="border-top: 3px double #000000;" align="left" width="68"> </td><td height="16" width="12" align="left"> </td><t d height="16" style="border-top: 3px double #000000;" align="left" width="12"> </td><td height="16" style="border-top: 3px double #000000;" align="left" width="68"> </td><td height="16" width="12" align="left"> </td><td height="16" style="border-top: 3px double #000000;" align="left" width="12"> </td><td height="16" style="border-top: 3px double #000000;" align="left" width="68"> </td><td height="16" width="12" align="left"> </td><td height="16" style="border-top: 3px double #000000;" align="left" width="12"> </td><td height="16" style="border-top: 3px double #000000;" align="left" width="89"> </td></tr><tr><td height="15" width="159" align="left"> </td><td height="15" width="12" align="left"> </td><td height="15" width="12" align="left"> </td><td height="15" width="75" align="left"> </td><td height="15" width="12" align="left"> </td><td height="15" width="12" align="left"> </td><td height="15" width="68" align="left"> </td><td height="15" width="12" align="left"> </td><td height="15" width="12" align="left"> </td><td height="15" width="68" align="left"> </td><td height="15" width="12" align="left"> </td><td height="15" width="12" align="left"> </td><td height="15" width="68" align="left"> </td><td height="15" width="12" align="left"> </td><td height="15" width="12" align="left"> </td><td height="15" width="89" align="left"> </td></tr><tr><td height="15" width="159" align="left">(Dollars in thousands)</td><td height="15" width="12" align="left"> </td><td width= "476" align="center" height="15" colspan="14">Three Months Ended June 27, 2009</td></tr><tr><td height="15" width="159" align="left"> </td><td height="15" width="12" align="left"> </td><td height="15" width="12" align="left"> </td><td height="15" width="75" align="center"> </td><td height="15" width="12" align="center"> </td><td height="15" width="12" align="left"> </td><td height="15" width="68" align="center"> </td><td height="15" width="12" align="center"> </td><td height="15" width="12" align="left"> </td><td height="15" width="68" align="center"> </td><td height="15" width="12" align="center"> </td><td height="15" width="12" align="left"> </td><td height="15" width="68" align="center"> </td><td height="15" width ="12" align="center"> </td><td width="101" align="center" height="15" colspan="2">Restructuring</td></tr><tr><td height="15" width="159" align="left"> </td><td height="15" width="12" align="left"> </td><td height="15" width="12" align="left"> </td><td height="15" width="75" align="center"> </td><td height="15" width="12" align="center"> </td><td height="15" width="12" align="left"> </td><td height="15" width="68" align="center"> </td><td height="15" width="12" align="center"> </td><td height="15" width="12" align="left"> </td><td height="15" width="68" align="center"> </td><td height="15" width="12" align="center"> </td><td width="80" align="left" height="15" colspan="2"> </td><td height="15" width="12" align="center "> </td><td width="101" align="center" height="15" colspan="2">Accrual</td></tr><tr><td height="15" width="159" align="left"> </td><td height="15" width="12" align="left"> </td><td width="87" align="center" height="15" colspan="2">Balance at</td><td height="15" width="12" align="center"> </td><td width="80" align="left" height="15" colspan="2"> </td><td height="15" width="12" align="center"> </td><td width="80" align="left" height="15" colspan="2"> </td><td height="15" width="12" align="center"> </td><td width="80" align="center" height="15" colspan="2">Asset</td><td height="15" width="12" align="center"> </td><td width="101" align="center" height="15" colspan="2">Balance at</td></tr><tr><td height="15" width="159" align="left"> </td> <td height="15" width="12" align="left"> </td><td width="87" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="15">March 28, 2009</td><td height="15" width="12" align="center"> </td><td width="80" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="15">Cost Incurred</td><td height="15" width="12" align="center"> </td><td width="80" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="15">Payments</td><td height="15" width="12" align="center"> </td><td width="80" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="15">Write down</td><td height="15" width="12" align="center"> </td><td width="101" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="15">June 27, 2009</td></tr><tr><td height="15" width="159" alig n="left"> </td><td height="15" width="12" align="left"> </td><td height="15" style="border-top: 1px solid #000000;" align="left" width="12"> </td><td height="15" style="border-top: 1px solid #000000;" align="left" width="75"> </td><td height="15" width="12" align="left"> </td><td height="15" style="border-top: 1px solid #000000;" align="left" width="12"> </td><td height="15" style="border-top: 1px solid #000000;" align="left" width="68"> </td><td height="15" width="12" align="left"> </td><td height="15" style="border-top: 1px solid #000000;" align="left" width="12"> </td><td height="15" style="border-top: 1px solid #000000;" align="left" width="68"> </td><td height="15" width="12" align="left"> </td><td height="15" style="border-top: 1px solid #000000;" align="left" width="12">& amp;#160;</td><td height="15" style="border-top: 1px solid #000000;" align="left" width="68"> </td><td height="15" width="12" align="left"> </td><td height="15" style="border-top: 1px solid #000000;" align="left" width="12"> </td><td height="15" style="border-top: 1px solid #000000;" align="left" width="89"> </td></tr><tr><td height="15" width="159" align="left">Employee-related costs</td><td height="15" width="12" align="left"> </td><td height="15" width="12" align="left">$</td><td height="15" width="75" align="right"> 2,729 </td><td height="15" width="12" align="right"> </td><td height="15" width="12" align="left">$</td><td height="15" width="68" align="right"> - </td><td height="15" width="12" align="right"> </td><td height="15" width="12" align= "left">$</td><td height="15" width="68" align="right"> (483)</td><td height="15" width="12" align="right"> </td><td height="15" width="12" align="left">$</td><td height="15" width="68" align="right"> - </td><td height="15" width="12" align="right"> </td><td height="15" width="12" align="left">$</td><td height="15" width="89" align="right"> 2,246 </td></tr><tr><td height="15" width="159" align="left">Facility related costs</td><td height="15" width="12" align="left"> </td><td height="15" width="12" align="left"> </td><td height="15" width="75" align="right"> 42 </td><td height="15" width="12" align="right"> </td><td height="15" width="12" align="left"> </td><td height="15" width="68" align="right"> -&# 160;</td><td height="15" width="12" align="right"> </td><td height="15" width="12" align="left"> </td><td height="15" width="68" align="right"> (42)</td><td height="15" width="12" align="right"> </td><td height="15" width="12" align="left"> </td><td height="15" width="68" align="right"> - </td><td height="15" width="12" align="right"> </td><td height="15" width="12" align="left"> </td><td height="15" width="89" align="right"> - </td></tr><tr><td height="15" width="159" align="left">Other exit & termination costs</td><td height="15" width="12" align="left"> </td><td height="15" style="border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="15" style="border-bottom: 1px solid #000000;" align="right" width ="75"> 78 </td><td height="15" width="12" align="right"> </td><td height="15" style="border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="15" style="border-bottom: 1px solid #000000;" align="right" width="68"> - </td><td height="15" width="12" align="right"> </td><td height="15" style="border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="15" style="border-bottom: 1px solid #000000;" align="right" width="68"> (78)</td><td height="15" width="12" align="right"> </td><td height="15" style="border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="15" style="border-bottom: 1px solid #000000;" align="right" width="68"> - </td><td height="15" width="12" align="right"> </td><td height="15" style=" border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="15" style="border-bottom: 1px solid #000000;" align="right" width="89"> - </td></tr><tr><td height="16" width="159" align="left"> </td><td height="16" width="12" align="left"> </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="75"> 2,849 </td><td height="16" width="12" align="right"> </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="68"> - </td><td height="16" width= "12" align="right"> </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="68"> (603)</td><td height="16" width="12" align="right"> </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="68"> - </td><td height="16" width="12" align="right"> </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="left" width="12">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;" align="right" width="89"> 2,246 </td& gt;</tr></table></div>

<div style="font-size:12pt">16. CAPITALIZATION OF SOFTWARE DEVELOPMENT COSTS The cost of software that is developed or obtained for internal use is accounted for pursuant to ASC Topic 350, Intangibles – Goodwill and Other. Pursuant to ASC Topic 350, the Company capitalizes costs incurred during the application development stage of software developed for internal use, and expenses costs incurred during the preliminary project and the post-implementation operation stages of development. The Company capitalized $0.5 million and $4.2 million in costs incurred for acquisition of the software license and related software development costs for new internal software that was in the application development stage during the three month period ended July 3, 2010 and June 27, 2009, respectively. The capitalized costs are included as a component of p roperty, plant and equipment in the consolidated financial statements. ASC Topic 985-20, Software, specifies that costs incurred internally in researching and developing a computer software product should be charged to expense until technological feasibility has been established for the product. Once technological feasibility is established, all software costs should be capitalized until the product is available for general release to customers. The Company capitalized $1.2 million and $1.3 million in other software development costs for ongoing initiatives during three month period ended July 3, 2010 and June 27, 2009, respectively. At July 3, 2010 and June 27, 2009, we have a total of $7.7 million and $7.2 million of costs capitalized related to other in process software development initiatives, respectively. The costs capitalized for each project are included in intangible assets in the consolidated financial statements. </div> 10-Q 2010-07-03 false --04-02 0000313143 Yes Large Accelerated Filer HAEMONETICS CORP No Yes 24669566 1338071042 2011 Q1