Total revenues for the second quarter of 2007 were $2.7 million, compared with $2.7 million for the same period last year. The increase in revenue for equipment and supplies caused by a major ink sale in the second quarter of 2007 was offset by slightly reduced license revenue.

Gross profit decreased from $2.4 million in the second quarter of 2006 to $1.9 million in the second quarter of 2007 due to lower margins in technology, services, development, equipment and supplies revenue.

Dr. Fyfe continued, `Our results for the second quarter primarily reflected the impact of license and development agreements signed during the fall of 2006. In May, we announced more significant growth in our material lifetimes -- through our joint venture Sumation. The lifetimes are approximately 40% better than those announced in March. At the SID 2007 Conference held in California in June of this year, we exhibited a 3'' diagonal 160ppi inkjet-printed display made by CDT using Casio's backplane design and technology. This was arguably one of the best quality displays that CDT has produced and clearly showed the potential for inkjet printing to tackle high resolution displays that are going to be increasingly in demand for handheld applications.`