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UNITED STATES



SECURITIES AND EXCHANGE COMMISSION



WASHINGTON, D. C. 20549



---



FORM 10-Q





|x | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended March 27, 2004.
|- | --------------------------------------------------------------------------------------------------------------------------------------





| ̈ | Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|- | ----------------------------------------------------------------------------------------



For the transition period from
 to





Commission File Numbers 333-108340 and
333-108340-06





|                                                               |  |                                                               
|-------------------------------------------------------------- |  | --------------------------------------------------------------
|TransDigm Inc.                                                 |  | TransDigm Holding Company                                     
|(Exact name of registrant as specified in its charter)         |  | (Exact name of registrant as specified in its charter)        
|                                                               | 
|Delaware                                                       |  | Delaware                                                      
|(State or other Jurisdiction of incorporation or organization) |  | (State or other Jurisdiction of incorporation or organization)
|                                                               | 
|34-1750032                                                     |  | 13-3733378                                                    
|(I.R.S. Employer Identification No.)                           |  | (I.R.S. Employer Identification No.)                          



26380 Curtiss Wright
Parkway, Richmond Heights, Ohio 44143

(Address of principal executive offices) (Zip Code)



(216) 289-4939

(Registrants telephone number, including area code)





---

(Former name, former
address and former fiscal year, if changed since last report.)



Indicate by
check mark whether each of the co-registrants (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the co-registrants was
required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.             YES x    
NO ̈



Indicate by check mark whether the co-registrants are accelerated filers (as defined in Rule 12b-2 of the Exchange Act).

YES ̈NO x



The number of shares outstanding of TransDigm Inc.s common stock, par
value $.01 per share, was 100 as of March 27, 2004.



The number of shares
outstanding of TransDigm Holding Companys common stock, par value $.01 per share, was 100 as of March 27, 2004.



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##### Table of Contents

INDEX





|           |  |                                                                                                                            |  |     
|---------- |  | -------------------------------------------------------------------------------------------------------------------------- |  | ----
|           |  |                                                                                                                            |  | Page
|Part I     |  | FINANCIAL INFORMATION                                                                                                      |  |     
|           |  |                                                                                                                           
|Item 1     |  | Financial Statements                                                                                                       |  |     
|           |  |                                                                                                                           
|           |  | Condensed Consolidated Balance Sheets  March 27, 2004 and September 30, 2003                                              |  | 1   
|           |  |                                                                                                                           
|           |  | Condensed Consolidated Statements of Income  Thirteen and Twenty-Six Week Periods Ended March 27, 2004 and March 29, 2003 |  | 2   
|           |  |                                                                                                                           
|           |  | Condensed Consolidated Statement of Changes in Stockholders Equity  Twenty-Six Week Period Ended March 27, 2004          |  | 3   
|           |  |                                                                                                                           
|           |  | Condensed Consolidated Statements of Cash Flows  Twenty-Six Week Periods Ended March 27, 2004 and March 29, 2003          |  | 4   
|           |  |                                                                                                                           
|           |  | Notes to Condensed Consolidated Financial Statements                                                                       |  | 5   
|           |  |                                                                                                                           
|Item 2     |  | Managements Discussion and Analysis of Financial Condition and Results of Operations                                      |  | 18  
|           |  |                                                                                                                           
|Item 3     |  | Quantitative and Qualitative Disclosure About Market Risk                                                                  |  | 29  
|           |  |                                                                                                                           
|Item 4     |  | Controls and Procedures                                                                                                    |  | 29  
|           |  |                                                                                                                           
|Part II    |  | OTHER INFORMATION                                                                                                          |  |     
|           |  |                                                                                                                           
|Item 6     |  | Exhibits and Reports on Form 8-K                                                                                           |  | 30  
|           |  |                                                                                                                           
|SIGNATURES |  |                                                                                                                            |  | 31  







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##### Table of Contents

PART I: FINANCIAL INFORMATION

ITEM 1



TRANSDIGM HOLDING COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in Thousands)

(Unaudited)

---

|                                           |  |                |           |   |                    |   |           |  
|------------------------------------------ |  | -------------- | --------- | - | ------------------ | - | --------- | -
|                                           |  | March 27, 2004 |           |   | September 30, 2003 |  
|ASSETS                                     |  |                |           |   |                    |   |           |  
|                                           |  |               
|CURRENT ASSETS:                            |  |                |           |   |                    |   |           |  
|Cash and cash equivalents                  |  | $              | 75,042    |   |                    | $ | 18,902    |  
|Trade accounts receivable, net             |  |                | 41,155    |   |                    |   | 36,709    |  
|Income taxes receivable                    |  |                |          |   |                    |   | 36,703    |  
|Inventories, net                           |  |                | 59,286    |   |                    |   | 77,386    |  
|Deferred income taxes                      |  |                | 13,777    |   |                    |   | 8,177     |  
|Prepaid expenses and other                 |  |                | 1,605     |   |                    |   | 3,850     |  
|                                           |  |                |           |   |                    |   |           |  
|Total current assets                       |  |                | 190,865   |   |                    |   | 181,727   |  
|                                           |  |               
|PROPERTY, PLANT AND EQUIPMENTNet          |  |                | 58,540    |   |                    |   | 60,342    |  
|                                           |  |               
|GOODWILL                                   |  |                | 807,880   |   |                    |   | 807,714   |  
|                                           |  |               
|OTHER INTANGIBLE ASSETSNet                |  |                | 228,982   |   |                    |   | 235,839   |  
|                                           |  |               
|DEBT ISSUE COSTSNet                       |  |                | 26,805    |   |                    |   | 28,771    |  
|                                           |  |               
|OTHER                                      |  |                | 726       |   |                    |   | 627       |  
|                                           |  |                |           |   |                    |   |           |  
|                                           |  |               
|TOTAL ASSETS                               |  | $              | 1,313,798 |   |                    | $ | 1,315,020 |  
|                                           |  |                |           |   |                    |   |           |  
|                                           | 
|LIABILITIES AND STOCKHOLDERS EQUITY       |  |                |           |   |                   
|                                           |  |               
|CURRENT LIABILITIES:                       |  |                |           |   |                    |   |           |  
|Current portion of long-term liabilities   |  | $              | 4,450     |   |                    | $ | 7,634     |  
|Accounts payable                           |  |                | 9,717     |   |                    |   | 11,221    |  
|Accrued liabilities                        |  |                | 25,544    |   |                    |   | 29,625    |  
|                                           |  |                |           |   |                    |   |           |  
|Total current liabilities                  |  |                | 39,711    |   |                    |   | 48,480    |  
|                                           |  |               
|LONG-TERM DEBTLess current portion        |  |                | 691,313   |   |                    |   | 692,050   |  
|                                           |  |               
|DEFERRED INCOME TAXES                      |  |                | 64,046    |   |                    |   | 64,364    |  
|OTHER NON-CURRENT LIABILITIES              |  |                | 3,043     |   |                    |   | 4,917     |  
|                                           |  |                |           |   |                    |   |           |  
|Total liabilities                          |  |                | 798,113   |   |                    |   | 809,811   |  
|                                           |  |                |           |   |                    |   |           |  
|                                           |  |               
|STOCKHOLDERS EQUITY:                      |  |                |           |   |                    |   |           |  
|Common stock                               |  |                | 513,329   |   |                    |   | 508,100   |  
|Retained earnings / (deficit)              |  |                | 2,437     |   |                    |   | (2,788    | )
|Accumulated other comprehensive loss       |  |                | (81       | ) |                    |   | (103      | )
|                                           |  |                |           |   |                    |   |           |  
|Total stockholders equity                 |  |                | 515,685   |   |                    |   | 505,209   |  
|                                           |  |                |           |   |                    |   |           |  
|                                           |  |               
|TOTAL LIABILITIES AND STOCKHOLDERS EQUITY |  | $              | 1,313,798 |   |                    | $ | 1,315,020 |  
|                                           |  |                |           |   |                    |   |           |  

See notes to condensed consolidated financial statements.



1



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TRANSDIGM HOLDING COMPANY



CONDENSED CONSOLIDATED STATEMENTS OF INCOME

FOR THE THIRTEEN AND TWENTY-SIX WEEK PERIODS ENDED

MARCH 27, 2004 AND MARCH 29, 2003

(Amounts in Thousands)

(Unaudited)

---

|                                                                                                                                                          |  |                            |        |                              |   |               |  |                            |         |  |   |        
|--------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------- | ------ | ---------------------------- | - | ------------- |  | -------------------------- | ------- |  | - | -------
|                                                                                                                                                          |  | Thirteen WeekPeriods Ended |        | Twenty-Six WeekPeriods Ended
|                                                                                                                                                          |  | March 27,2004              |        | (Predecessor)March 29,2003   |   | March 27,2004 |  | (Predecessor)March 29,2003
|NET SALES                                                                                                                                                 |  | $                          | 71,903 |                              | $ | 79,616        |  | $                          | 139,585 |  | $ | 149,421
|COST OF SALES (Including inventory purchase accounting charge of $0 and $18,057 for the thirteen and twenty-six weeks ended March 27, 2004,
respectively) |  |                            | 34,266 |                              |   | 42,691        |  |                            | 85,839  |  |   | 78,186 
|                                                                                                                                                          |  |                            |        |                              |   |               |  |                            |         |  |   |        
|GROSS PROFIT                                                                                                                                              |  |                            | 37,637 |                              |   | 36,925        |  |                            | 53,746  |  |   | 71,235 
|OPERATING EXPENSES:                                                                                                                                       |  |                            |        |                              |   |               |  |                            |         |  |   |        
|Selling and administrative                                                                                                                                |  |                            | 7,412  |                              |   | 5,998         |  |                            | 14,491  |  |   | 11,687 
|Amortization of intangibles                                                                                                                               |  |                            | 2,855  |                              |   | 287           |  |                            | 5,638   |  |   | 571    
|                                                                                                                                                          |  |                            |        |                              |   |               |  |                            |         |  |   |        
|Total operating expenses                                                                                                                                  |  |                            | 10,267 |                              |   | 6,285         |  |                            | 20,129  |  |   | 12,258 
|                                                                                                                                                          |  |                            |        |                              |   |               |  |                            |         |  |   |        
|INCOME FROM OPERATIONS                                                                                                                                    |  |                            | 27,370 |                              |   | 30,640        |  |                            | 33,617  |  |   | 58,977 
|INTEREST EXPENSENet                                                                                                                                      |  |                            | 12,507 |                              |   | 9,043         |  |                            | 25,176  |  |   | 17,982 
|                                                                                                                                                          |  |                            |        |                              |   |               |  |                            |         |  |   |        
|INCOME BEFORE INCOME TAXES                                                                                                                                |  |                            | 14,863 |                              |   | 21,597        |  |                            | 8,441   |  |   | 40,995 
|INCOME TAX PROVISION                                                                                                                                      |  |                            | 5,618  |                              |   | 7,929         |  |                            | 3,216   |  |   | 15,209 
|                                                                                                                                                          |  |                            |        |                              |   |               |  |                            |         |  |   |        
|NET INCOME                                                                                                                                                |  | $                          | 9,245  |                              | $ | 13,668        |  | $                          | 5,225   |  | $ | 25,786 
|                                                                                                                                                          |  |                            |        |                              |   |               |  |                            |         |  |   |        
|See notes to
condensed consolidated financial statements.                                                                                                 |  |                            |        |                              |   |               |  |                            |        



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TRANSDIGM HOLDING COMPANY



CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN

STOCKHOLDERS EQUITY

FOR THE TWENTY-SIX WEEK PERIOD ENDED MARCH 27, 2004

(Amounts in
Thousands)

(Unaudited)

---

|                                                                             |  |             |         |   |                             |   |        |                                   |  |   |       |   |  |   |         |  
|---------------------------------------------------------------------------- |  | ----------- | ------- | - | --------------------------- | - | ------ | --------------------------------- |  | - | ----- | - |  | - | ------- | -
|                                                                             |  | CommonStock |         |   | RetainedEarnings /(Deficit) |   |        | AccumulatedOtherComprehensiveLoss |  |   | Total |  
|BALANCE, OCTOBER 1, 2003                                                     |  | $           | 508,100 |   |                             | $ | (2,788 | )                                 |  | $ | (103  | ) |  | $ | 505,209 |  
|                                                                             |  |             |         |  
|Equity contributions from TD Holding                                        |  |             |         |   |                             |   |        |                                   |  |   |       |   |  |   |         |  
|Stock option and deferred compensation costs incurred by TD Holding (Note 8) |  |             | 3,100   |   |                             |   |       |                                   |  |   |      |   |  |   | 3,100   |  
|Income tax benefit from interest expense incurred by TD Holding (Note 1)     |  |             | 2,625   |   |                             |   |       |                                   |  |   |      |   |  |   | 2,625   |  
|Comprehensive income                                                        |  |             |         |   |                             |   |        |                                   |  |   |       |   |  |   |         |  
|Net income                                                                   |  |             |        |   |                             |   | 5,225  |                                   |  |   |      |   |  |   | 5,225   |  
|Foreign currency translation adjustment                                      |  |             |        |   |                             |   |       |                                   |  |   | 22    |   |  |   | 22      |  
|                                                                             |  |             |         |   |                             |   |        |                                   |  |   |       |   |  |   |         |  
|Comprehensive income                                                         |  |             |         |   |                             |   |        |                                   |  |   |       |   |  |   | 5,247   |  
|Purchase of common stock                                                     |  |             | (520    | ) |                             |   |       |                                   |  |   |      |   |  |   | (520    | )
|Proceeds from exercise of stock options                                      |  |             | 24      |   |                             |   |       |                                   |  |   |      |   |  |   | 24      |  
|                                                                             |  |             |         |   |                             |   |        |                                   |  |   |       |   |  |   |         |  
|BALANCE, MARCH 27, 2004                                                      |  | $           | 513,329 |   |                             | $ | 2,437  |                                   |  | $ | (81   | ) |  | $ | 515,685 |  
|                                                                             |  |             |         |   |                             |   |        |                                   |  |   |       |   |  |   |         |  
|See notes to
condensed consolidated financial statements.                    |  |             |         |   |                             |   |        |                                   |  |   |       |   | 



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TRANSDIGM HOLDING COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in Thousands)

(Unaudited)

---

|                                                                                  |  |                               |         |   |                |   |         |  
|--------------------------------------------------------------------------------- |  | ----------------------------- | ------- | - | -------------- | - | ------- | -
|                                                                                  |  | Twenty-Six Week Periods Ended |        
|                                                                                  |  |                               |         |   | (Predecessor)  |  
|                                                                                  |  | March 27,2004                 |         |   | March 29, 2003 |  
|OPERATING ACTIVITIES:                                                             |  |                               |         |   |                |   |         |  
|Net income                                                                        |  | $                             | 5,225   |   |                | $ | 25,786  |  
|Adjustments to reconcile net income to net cash provided by operating activities: |  |                               |         |   |                |   |         |  
|Noncash inventory purchase accounting charge                                      |  |                               | 18,057  |   |                |   |        |  
|Depreciation                                                                      |  |                               | 3,766   |   |                |   | 3,352   |  
|Amortization of intangibles                                                       |  |                               | 5,638   |   |                |   | 571     |  
|Amortization of debt issue costs and note premium                                 |  |                               | 2,016   |   |                |   | 1,404   |  
|Interest deferral on Holdings PIK Notes                                           |  |                               |        |   |                |   | 1,546   |  
|Noncash stock option and deferred compensation costs                              |  |                               | 3,100   |   |                |   |        |  
|Changes in assets/liabilities, net of effects from acqusition of business:        |  |                               |         |   |                |   |         |  
|Accounts receivable                                                               |  |                               | (4,446  | ) |                |   | (7,435  | )
|Inventories                                                                       |  |                               | 43      |   |                |   | (1,345  | )
|Income taxes receivable and other assets                                          |  |                               | 33,519  |   |                |   | 1,210   |  
|Accounts payable                                                                  |  |                               | (1,504  | ) |                |   | 1,681   |  
|Accrued and other liabilities                                                     |  |                               | (4,577  | ) |                |   | 2,631   |  
|                                                                                  |  |                               |         |   |                |   |         |  
|Net cash provided by operating activities                                         |  |                               | 60,837  |   |                |   | 29,401  |  
|                                                                                  |  |                               |         |   |                |   |         |  
|INVESTING ACTIVITIES:                                                             |  |                               |         |   |                |   |         |  
|Acquisition of Norco, Inc. net assets                                             |  |                               |        |   |                |   | (52,954 | )
|Capital expenditures                                                              |  |                               | (1,964  | ) |                |   | (2,703  | )
|                                                                                  |  |                               |         |   |                |   |         |  
|Net cash used in investing activities                                             |  |                               | (1,964  | ) |                |   | (55,657 | )
|                                                                                  |  |                               |         |   |                |   |         |  
|FINANCING ACTIVITIES:                                                             |  |                               |         |   |                |   |         |  
|Borrowings under credit facility, net of fees of $200                             |  |                               |        |   |                |   | 24,800  |  
|Repayment of Holdings PIK Notes                                                   |  |                               |        |   |                |   | (32,802 | )
|Payment of amounts borrowed under credit facility                                 |  |                               | (737    | ) |                |   | (1,989  | )
|Payment of license obligation                                                     |  |                               | (1,500  | ) |                |   | (1,200  | )
|Purchase of common stock                                                          |  |                               | (520    | ) |                |   |        |  
|Proceeds from exercise of stock options                                           |  |                               | 24      |   |                |   |        |  
|                                                                                  |  |                               |         |   |                |   |         |  
|Net cash used in financing activities                                             |  |                               | (2,733  | ) |                |   | (11,191 | )
|                                                                                  |  |                               |         |   |                |   |         |  
|NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                              |  |                               | 56,140  |   |                |   | (37,447 | )
|CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                    |  |                               | 18,902  |   |                |   | 49,206  |  
|                                                                                  |  |                               |         |   |                |   |         |  
|CASH AND CASH EQUIVALENTS, END OF PERIOD                                          |  | $                             | 75,042  |   |                | $ | 11,759  |  
|                                                                                  |  |                               |         |   |                |   |         |  
|SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:                                 |  |                               |         |   |                |   |         |  
|Cash paid during the period for interest                                          |  | $                             | 22,612  |   |                | $ | 14,222  |  
|                                                                                  |  |                               |         |   |                |   |         |  
|Cash (received) paid during the period for income taxes                           |  | $                             | (30,539 | ) |                | $ | 11,180  |  
|                                                                                  |  |                               |         |   |                |   |         |  



See notes to condensed consolidated
financial statements.



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TRANSDIGM HOLDING COMPANY



NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

THIRTEEN AND TWENTY-SIX WEEK PERIODS ENDED MARCH 27, 2004 AND MARCH
29, 2003 (UNAUDITED)



|1. | DESCRIPTION OF THE BUSINESS AND MERGER
|-- | --------------------------------------



Description of the BusinessTransDigm Holding Company (Holdings), through its wholly-owned subsidiary, TransDigm Inc.
(TransDigm), is a leading global supplier of highly engineered aircraft components for use on nearly all commercial and military aircraft in service today. TransDigm, which includes the AeroControlex and Adel Wiggins Groups, along with
its wholly-owned subsidiaries, Champion Aerospace Inc. (Champion), MarathonNorco Aerospace, Inc. (Marathon), ZMP, Inc. (ZMP), Adams Rite Aerospace, Inc. (Adams Rite) and TD Finance Corporation
(collectively, and together with Holdings, the Company) offers a broad line of proprietary aerospace components in two product categories. Major product offerings in the Power System Components category include ignition system
components, gear pumps, mechanical/electromechanical controls and actuators, batteries and chargers, and rods and locking devices used to hold open panels to allow access to engines for maintenance. Major product offerings in the Airframe System
Components category include engineered connectors, engineered latches and locking devices, and lavatory hardware and components.



MergerOn July 22, 2003, Holdings consummated a merger with TD Acquisition Corporation (TD Acquisition) pursuant to which
TD Acquisition merged with and into Holdings, with Holdings continuing as the surviving corporation as a wholly-owned subsidiary of a newly formed corporation, TD Holding Corporation (the Merger). In connection with the Merger, TransDigm
Inc. completed a tender offer for its outstanding 103/8% Senior Subordinated Notes due 2008 (the Senior
Subordinated Notes). Of the $200 million aggregate principal amount of outstanding Senior Subordinated Notes, a total of approximately $197.8 million aggregate principal amount of Senior Subordinated Notes were validly tendered and the
remaining $2.2 million aggregate principal amount of Senior Subordinated Notes were defeased pursuant to the terms of the indenture governing the Senior Subordinated Notes. In December 2003, TransDigm Inc. redeemed the defeased Senior Subordinated
Notes. In addition, as a result of the consummation of the Merger, the outstanding balance of $197.5 million under TransDigm Inc.s then existing senior secured credit facility became due and was repaid in its entirety upon the closing of the
Merger. The cash merger consideration of approximately $759.7 million paid to Holdings former common and preferred stockholders, holders of in-the-money stock options and the holder of the warrant to purchase Holdings common stock
(including merger related expenses of approximately $29.1 million borne by the then existing equity holders of Holdings and excluding the $35.7 million fair value of stock options rolled over in connection with the Merger), acquisition fees and
expenses of approximately $34.7 million and the repayment of substantially all of TransDigm Inc.s then existing debt in connection with the consummation of the Merger was financed through: (1) an investment of $471.3 million in TD Holding
Corporation (TD Holding) by Warburg Pincus Private Equity VIII, L.P. (Warburg Pincus) and certain other institutional investors which was contributed as equity to TD Acquisition which then contributed such proceeds as equity
to TD Funding Corporation which merged with and into TransDigm Inc. in connection with the Merger, (2) $295.0 million of borrowings under a new secured term loan facility, (3) $400.0 million of gross proceeds from the issuance by TransDigm Inc. of
new 83/8% Senior Subordinated Notes due 2011 (the 83/8% Senior Subordinated Notes) and (4) the use of existing cash balances. Following the Merger, Warburg Pincus, through its direct and indirect
ownership, owns a majority of the outstanding common stock of TD Holding. The new 83/8% Senior Subordinated
Notes are fully and unconditionally guaranteed, jointly and severally and on an unsecured senior subordinated basis, by Holdings and all of TransDigms existing domestic subsidiaries.



Prior to the Merger, the Company filed its own consolidated federal income
tax return. For periods subsequent to the Merger, the Company will file a consolidated federal income tax return with TD Holding. Accordingly, Holdings, TransDigm and its subsidiaries have entered into a tax sharing agreement with TD Holding under
which each companys federal income tax liability for any period will equal the lesser of (1) each companys U.S. federal income taxes that would be payable by such company had the company filed a separate income tax return for that fiscal
year based on the companys separate taxable income; or (2) the product of (a) the affiliated group of corporations consisting of TD Holding, as the common parent, and each companys actual consolidated U.S. federal tax liability for such
fiscal year and (b) a fraction, the numerator of which is such companys separate tax return liability for that fiscal year and the denominator of which is the sum of each companys separate tax return liability for that fiscal year.
Because TD Holding has no operations or assets other than its investment in Holdings,



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TD Holding is expected to generate an annual tax loss, resulting from interest expense on the unsecured
debt TD Holding incurred to finance its investment in Holdings. As the tax benefits from these losses reduce the federal income tax liability of the Company under the provisions of the tax sharing agreement, they will be recorded as an equity
contribution to the Company from TD Holding. For the period ended March 27, 2004, the Company recorded $2.6 million of equity contributions from TD Holding relating to the tax sharing agreement.



The Merger was accounted for as a purchase and preliminary fair value
adjustments to the Companys assets and liabilities were recorded as of the date of the Merger. The Company is in the process of obtaining third-party valuations of certain tangible and intangible assets; thus, the allocation of TD
Holdings investment to the Companys assets and liabilities is subject to adjustment. The Company expects that $681.1 million of the $807.9 million of goodwill recorded in connection with the Merger will not be deductible for income tax
purposes.



The following table summarizes the preliminary fair
values assigned to the Companys assets and liabilities in connection with the Merger (in thousands):



|                                  |  |                               |         |   |          
|--------------------------------- |  | ----------------------------- | ------- | - | ---------
|Assets:                           |  |                               |         |   |          
|                                  |  | Current assets                |         | $ | 213,576  
|                                  |  | Property, plant and equipment |         |   | 60,732   
|                                  |  | Goodwill                      |         |   | 807,880  
|                                  |  | Other intangible assets       |         |   | 237,814  
|                                  |  | Other assets                  |         |   | 30,038   
|                                  |  |                               |         |   |          
|                                  |  | Total assets                  |         |   | 1,350,040
|                                  |  |                               |         |   |          
|Liabilities:                      |  |                               |         |   |          
|                                  |  | Current liabilities           |         |   | 82,100   
|                                  |  | Long-term debt                |         |   | 692,788  
|                                  |  | Deferred income taxes         |         |   | 63,451   
|                                  |  | Other liabilities             |         |   | 4,703    
|                                  |  |                               |         |   |          
|                                  |  | Total liabilities             |         |   | 843,042  
|                                  |  |                               |         |   |          
|TD Holding investment in Holdings |  | $                             | 506,998
|                                  |  |                               |         |   |          



The following table
summarizes the unaudited, consolidated pro forma results of operations of the Company, as if the Merger and the Norco Acquisition (see Note 4) had occurred on the first day of the thirteen and twenty-six weeks ended March 29, 2003 (Predecessor) (in
thousands):



|                       |  |                                                  |        |   |                                                    |   |         |  
|---------------------- |  | ------------------------------------------------ | ------ | - | -------------------------------------------------- | - | ------- | -
|                       |  | ThirteenWeeks Ended March 29, 2003 (Predecessor) |        |   | Twenty-SixWeeks Ended March 29, 2003 (Predecessor) |  
|Net sales              |  | $                                                | 81,923 |   |                                                    | $ | 156,921 |  
|Income from operations |  |                                                  | 8,679  |   |                                                    |   | 21,768  |  
|Net loss               |  |                                                  | (2,677 | ) |                                                    |   | (2,924  | )



These pro forma
results of operations include the effects of the: (i) inventory purchase accounting adjustments of approximately $18.1 million and $30.1 million that were charged to cost of sales during the thirteen and twenty-six weeks ended March 29, 2003 as the
inventory on hand as of the date of the transactions was sold, (ii) additional amortization expense that was recognized from the identifiable intangible assets recorded in accounting for the transactions, (iii) additional depreciation expense that
resulted from the write-up of the carrying value of property, plant and equipment to fair value in accounting for the Merger, (iv) additional compensation expense that resulted from the new stock option plan and the deferred compensation plans of TD
Holding established in conjunction with the Merger that cover certain management personnel of the Company, and (v) additional interest expense that resulted from the Companys increased indebtedness resulting from the transactions. The pro
forma results of operations for the periods ended March 29, 2003 exclude the $176 million Merger charge recorded in July 2003 that was principally composed of compensation costs recognized for stock options redeemed or rolled over in



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connection with the Merger, the premium paid to redeem the Senior Subordinated Notes and other costs
related to the Merger. This pro forma information is not necessarily indicative of the results that actually would have been obtained if the transactions had occurred as of the beginning of the periods presented and is not intended to be a
projection of future results.



Separate Financial
StatementsSeparate financial statements of TransDigm are not presented since the 83/8% Senior
Subordinated Notes are fully and unconditionally guaranteed on a senior subordinated basis by Holdings and all existing domestic subsidiaries of TransDigm and since Holdings has no significant operations or assets separate from its investment in
TransDigm.



|2. | UNAUDITED INTERIM FINANCIAL INFORMATION
|-- | ---------------------------------------



The financial information included herein is unaudited; however, the information reflects all adjustments (consisting solely of normal recurring
adjustments) that are, in the opinion of management, necessary for a fair presentation of the Companys financial position and results of operations and cash flows for the interim periods presented. These financial statements and notes should
be read in conjunction with the financial statements and related notes included in the Companys Annual Report on Form 10-K for the year ended September 30, 2003. The September 30, 2003 condensed consolidated balance sheet was derived from the
Companys audited financial statements. The results of operations for the thirteen and twenty-six week periods ended March 27, 2004 are not necessarily indicative of the results to be expected for the full year. Certain reclassifications have
been made to the financial statements for the periods ended March 29, 2003 (Predecessor) to conform to the classifications used in the financial statements for the period ended March 27, 2004.



Since the date of the Merger (see Note 1), the accompanying financial
statements include fair value adjustments to assets and liabilities, including inventory, goodwill, other intangible assets and property, plant and equipment and the subsequent impact on cost of sales, amortization, and depreciation expenses.
Accordingly, the accompanying condensed consolidated financial statements for periods prior to the Merger are labeled as Predecessor financial statements.



|3. | NEW ACCOUNTING STANDARDS
|-- | ------------------------



During the quarter ended December 27, 2003, the Company implemented the provisions of the Financial Accounting Standards Boards (the
FASBs) Emerging Issues Task Force Abstract No 00-21, Revenue Arrangements with Multiple Deliverables,which provides criteria for determining how to account for multiple-deliverable revenue arrangements. The implementation
of this pronouncement had no impact on the Companys consolidated financial position or results of operations.



During December 2003, the FASB issued a revised Interpretation No. 46, Consolidation of Variable Interest Entities (FIN 46R), which
requires existing, unconsolidated variable interest entities to be consolidated by their primary beneficiaries if the entities do not effectively disperse risks among the parties involved. The Company is not associated with variable interest
entities; therefore, the adoption of this statement did not have any effect on the Companys consolidated financial position or results of operations.



During December 2003, the FASB also issued a revision to Statement of Financial Accounting Standards No. 132, Employers Disclosures about
Pensions and Other Postretirement Benefits, an amendment of FASB Statements No. 87, 88, and 106, which expands the disclosure requirements regarding plan assets and benefit obligations for the Companys two defined benefit pension plans.
The implementation of this pronouncement had no impact on the Companys consolidated financial position or results of operations.



|4. | ACQUISITIONS
|-- | ------------



NorcoOn February 24, 2003, Marathon acquired certain assets and assumed certain liabilities of the Norco, Inc.
(Norco) business from TransTechnology Corporation for $51.0 million in cash (the Acquisition). In addition, the Company was required to pay approximately $1.0 million of asset transfer tax payments in accordance with the
purchase agreement and, during August 2003, a $1.1 million purchase price adjustment was received from TransTechnology Corporation (excluding related fees and expenses of $0.1 million) based on a final determination of working capital as of the
closing of the Norco Acquisition.



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Norco is a leading aerospace component manufacturer of proprietary engine hold open mechanisms and
specialty connecting devices. The primary reasons for the Acquisition were Norcos proprietary aerospace components, significant aftermarket sales and large share of niche markets that are consistent with the Companys overall business and
strategic direction. In addition, as a result of the Acquisition, Marathon reduced the combined operating costs through the relocation of the Norco manufacturing process into its existing Waco, Texas facility. During the fourth quarter of fiscal
2003, the Company relocated Norcos manufacturing operations from Norcos former facility in Connecticut to Marathons Waco, Texas facility. In connection with this relocation, Norcos lease at its Connecticut facility was
cancelled.



The Company accounted for the Acquisition as a
purchase and included the results of operations of the acquired business in its consolidated financial statements from the effective date of the Acquisition. Substantially all of the goodwill recognized in accounting for the Acquisition is
deductible for income tax purposes.



|5. | INVENTORIES
|-- | -----------



Inventories are stated at the lower of cost or market. Cost of inventories is determined by the average cost and the first-in, first-out (FIFO) methods.
Inventories consist of the following (in thousands):



|                                                                                                                                                           |  |               |        |   |                   |   |        |  
|---------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------- | ------ | - | ----------------- | - | ------ | -
|                                                                                                                                                           |  | March 27,2004 |        |   | September 30,2003 |  
|Work-in-progress and finished goods(1)                                                                                                                     |  | $             | 34,152 |   |                   | $ | 49,915 |  
|Raw materials and purchased component parts                                                                                                                |  |               | 32,633 |   |                   |   | 34,512 |  
|                                                                                                                                                           |  |               |        |   |                   |   |        |  
|Total                                                                                                                                                      |  |               | 66,785 |   |                   |   | 84,427 |  
|Reserve for excess and obsolete inventory                                                                                                                  |  |               | (7,499 | ) |                   |   | (7,041 | )
|                                                                                                                                                           |  |               |        |   |                   |   |        |  
|Inventoriesnet                                                                                                                                            |  | $             | 59,286 |   |                   | $ | 77,386 |  
|                                                                                                                                                           |  |               |        |   |                   |   |        |  
|(1)The balance at September 30, 2003 includes $18.1 million of purchase price accounting adjustments recorded in conjunction with the Merger (see Note
1). | 



|6. | INTANGIBLE ASSETS
|-- | -----------------



Intangible assets subject to amortization consist of the following (in thousands):



|                      |  |                       |         |                          |   |       |  |   |        
|--------------------- |  | --------------------- | ------- | ------------------------ | - | ----- |  | - | -------
|                      |  | March 27, 2004       
|                      |  | Gross Carrying Amount |         | Accumulated Amortization |   | Net  
|Unpatented technology |  | $                     | 82,033  |                          | $ | 2,459 |  | $ | 79,574 
|License agreement     |  |                       | 9,468   |                          |   | 358   |  |   | 9,110  
|Trade secrets         |  |                       | 11,772  |                          |   | 357   |  |   | 11,415 
|Patented technology   |  |                       | 1,345   |                          |   | 119   |  |   | 1,226  
|Order backlog         |  |                       | 6,480   |                          |   | 4,320 |  |   | 2,160  
|                      |  |                       |         |                          |   |       |  |   |        
|Total                 |  | $                     | 111,098 |                          | $ | 7,613 |  | $ | 103,485
|                      |  |                       |         |                          |   |       |  |   |        



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|                      |  |                     |         |                         |   |       |  |   |        
|--------------------- |  | ------------------- | ------- | ----------------------- | - | ----- |  | - | -------
|                      |  | September 30, 2003 
|                      |  | GrossCarryingAmount |         | AccumulatedAmortization |   | Net  
|Unpatented technology |  | $                   | 82,033  |                         | $ | 662   |  | $ | 81,371 
|License agreement     |  |                     | 10,687  |                         |   | 101   |  |   | 10,586 
|Trade secrets         |  |                     | 11,772  |                         |   | 97    |  |   | 11,675 
|Patented technology   |  |                     | 1,345   |                         |   | 15    |  |   | 1,330  
|Order backlog         |  |                     | 6,480   |                         |   | 1,100 |  |   | 5,380  
|                      |  |                     |         |                         |   |       |  |   |        
|Total                 |  | $                   | 112,317 |                         | $ | 1,975 |  | $ | 110,342
|                      |  |                     |         |                         |   |       |  |   |        



The total carrying
amount of identifiable intangible assets not subject to amortization consists of $125.5 million of trademarks and trade names at both March 27, 2004 and September 30, 2003.



The aggregate amortization expense on identifiable intangible assets for the thirteen and twenty-six weeks ended March 27,
2004 and March 29, 2003 was approximately $2.9 million, $5.6 million, $0.3 million, and $0.6 million, respectively. The estimated amortization expense for fiscal 2004 is $10.3 million and for each of the five succeeding years 2005 through 2009 is
$5.0 million.



The following is a summary of the changes in
the carrying value of goodwill from September 30, 2003 through March 27, 2004:



|                                      |  |   |        
|------------------------------------- |  | - | -------
|Balance, September 30, 2003           |  | $ | 807,714
|Purchase price allocation adjustments |  |   | 166    
|                                      |  |   |        
|Balance, March 27, 2004               |  | $ | 807,880
|                                      |  |   |        



|7. | PRODUCT WARRANTY
|-- | ----------------



The Company provides limited warranties in connection with the sale of its products. The warranty period for products sold varies among the Companys
operations, ranging from 90 days to five years; however, the warranty period for the majority of the Companys sales generally does not exceed one year. A provision for the estimated cost to repair or replace the products is recorded at the
time of sale and periodically adjusted to reflect actual experience. The following table presents a reconciliation of changes in the product warranty liability for the twenty-six week periods ended March 27, 2004 and March 29, 2003 (Predecessor) (in
thousands):



|                                         |  |                        |        |   |               |   |       |  
|---------------------------------------- |  | ---------------------- | ------ | - | ------------- | - | ----- | -
|                                         |  | Twenty-Six Weeks Ended |       
|                                         |  |                        |        |   | (Predecessor) |  
|                                         |  | March 27,2004          |        |   | March 29,2003 |  
|Liability balance at beginning of period |  | $                      | 3,070  |   |               | $ | 2,356 |  
|Accruals for warranties issued           |  |                        | 842    |   |               |   | 1,014 |  
|Warranty claims settled                  |  |                        | (1,033 | ) |               |   | (647  | )
|                                         |  |                        |        |   |               |   |       |  
|Liability balance at end of period       |  | $                      | 2,879  |   |               | $ | 2,723 |  
|                                         |  |                        |        |   |               |   |       |  





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|8. | RETIREMENT PLANS
|-- | ----------------



Defined Benefit Pension PlansThe Company has two non-contributory defined benefit pension plans, which together cover certain union
employees. The plans provide benefits of stated amounts for each year of service. The Companys funding policy is to contribute actuarially determined amounts allowable under Internal Revenue Service regulations. The plans assets consist
primarily of guaranteed investment contracts with an insurance company.



The components of net periodic benefit cost is detailed below (in thousands):



|                               |  |                      |     |   |                        |   |     |               |  |   |               |   |  |   |      |  
|------------------------------ |  | -------------------- | --- | - | ---------------------- | - | --- | ------------- |  | - | ------------- | - |  | - | ---- | -
|                               |  | Thirteen Weeks Ended |     |   | Twenty-Six Weeks Ended |  
|                               |  |                      |     |   | (Predecessor)          |   |     |               |  |   | (Predecessor) |  
|                               |  | March 27,2004        |     |   | March 29,2003          |   |     | March 27,2004 |  |   | March 29,2003 |  
|Service cost                   |  | $                    | 23  |   |                        | $ | 22  |               |  | $ | 45            |   |  | $ | 44   |  
|Interest cost                  |  |                      | 94  |   |                        |   | 92  |               |  |   | 188           |   |  |   | 184  |  
|Expected return on plan assets |  |                      | (64 | ) |                        |   | (73 | )             |  |   | (127          | ) |  |   | (146 | )
|Net amortization and deferral  |  |                      | 7   |   |                        |   | 35  |               |  |   | 15            |   |  |   | 70   |  
|                               |  |                      |     |   |                        |   |     |               |  |   |               |   |  |   |      |  
|                               |  | $                    | 60  |   |                        | $ | 76  |               |  | $ | 121           |   |  | $ | 152  |  
|                               |  |                      |     |   |                        |   |     |               |  |   |               |   |  |   |      |  



Deferred
Compensation PlansCertain management personnel of the Company participate in one or both of two deferred compensation plans of TD Holding that were established in connection with the Merger. Vested interests in a rollover deferred
compensation plan equal to approximately $17.8 million of the $35.7 million fair value of the stock options rolled over in connection with the Merger were issued as partial compensation in exchange for such options (see Note 1). Managements
interest in the rollover deferred compensation plan accretes at a rate of 12% per annum. Notional interests in a management deferred compensation plan totaling $18.1 million were also issued to certain management personnel in connection with the
Merger. The vesting provisions of the management deferred compensation plan are identical to the vesting provisions contained in the TD Holding stock option plan and are based on the achievement of time and performance criteria over a five year
period. Managements interests in the management deferred compensation plan were initially valued at zero and accrete at a rate equal to 11.1% of the sum of the interest accrued on the loans extended to TD Holding in connection with the Merger
and the notional interest credited under the rollover deferred compensation plan. Because the participants of these deferred compensation plans are management personnel of the Company, the cost of the plans, which totaled $1.6 million and $3.1
million for the thirteen and twenty-six week periods ended period ended March 27, 2004, is pushed-down to the Company and recognized as an expense and a capital contribution from TD Holding. The vested obligations under the deferred compensation
plans represent obligations of TD Holding and are not guaranteed by Holdings or any of its subsidiaries.



|9. | CONTINGENCIES
|-- | -------------



During the ordinary course of business, the Company is from time to time threatened with, or may become a party to, legal actions and other proceedings.
While the Company is currently involved in certain legal proceedings, it believes the results of these proceedings will not have a material adverse effect on its financial condition, results of operations or cash flows. The Company believes that its
potential exposure to such legal actions is adequately covered by its aviation product and general liability insurance.



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|10. | SUBSEQUENT EVENT
|--- | ----------------



On April 1, 2004, TransDigms senior credit facility was amended and restated to refinance approximately $294 million of term loans then outstanding.
The scheduled term loan payments under the amended and restated facility are approximately $2.94 million per annum (payable in quarterly installments) through June 30, 2010. The remaining unpaid principal amount of the term loan (approximately $276
million) will be due on July 22, 2010. The Amended and Restated Credit Agreement also eliminated the applicable margin percentage grid with respect to the term loans referred to above and fixed the applicable margin over the interest rate borne by
the term loans to 2.25% per annum for adjusted LIBO rate term loans and 1.25% for alternate base rate term loans. Both of the applicable margins were reduced by .75% from the percentages in effect prior to the amendment. The amended and restated
senior credit facility did not modify the applicable margin percentage grid with respect to loans made under the revolving credit line.



|11. | SUPPLEMENTAL GUARANTOR INFORMATION
|--- | ----------------------------------



TransDigms 83/8% Senior Subordinated Notes (see Note 1) are fully and unconditionally guaranteed by Holdings and all direct and indirect subsidiaries of TransDigm (other than one wholly-owned, non-guarantor subsidiary that has inconsequential
assets, liabilities and equity) on a senior subordinated basis. The Holdings guarantee of the Senior Subordinated Notes is subordinated to Holdings guarantee of TransDigms borrowings under its new senior secured credit facility. The
following supplemental consolidating condensed financial information presents the balance sheets of the Company as of March 27, 2004 and September 30, 2003 and its statements of income and cash flows for the twenty-six weeks ended March 27, 2004 and
March 29, 2003 (Predecessor).



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TRANSDIGM HOLDING COMPANY



CONDENSED CONSOLIDATING BALANCE SHEET

AS OF MARCH 27, 2004

(In Thousands)



|                                                     |  |          |         |           |   |                      |  |   |              |   |  |                   |            |   |  |   |          
|---------------------------------------------------- |  | -------- | ------- | --------- | - | -------------------- |  | - | ------------ | - |  | ----------------- | ---------- | - |  | - | ---------
|                                                     |  | Holdings |         | TransDigm |   | SubsidiaryGuarantors |  |   | Eliminations |   |  | TotalConsolidated
|ASSETS                                               |  |          |         |           |   |                      |  |   |              |   |  |                   |            |   |  |   |          
|CURRENT ASSETS:                                      |  |          |         |           |   |                      |  |   |              |   |  |                   |            |   |  |   |          
|Cash and cash equivalents                            |  | $        |        |           | $ | 76,649               |  | $ | (1,607       | ) |  | $                 |           |   |  | $ | 75,042   
|Trade accounts receivableNet                        |  |          |        |           |   | 17,463               |  |   | 23,692       |   |  |                   |           |   |  |   | 41,155   
|Inventories                                          |  |          |        |           |   | 19,920               |  |   | 39,366       |   |  |                   |           |   |  |   | 59,286   
|Deferred income taxes                                |  |          |        |           |   | 13,777               |  |   |             |   |  |                   |           |   |  |   | 13,777   
|Prepaid expenses and other                           |  |          |        |           |   | 560                  |  |   | 1,045        |   |  |                   |           |   |  |   | 1,605    
|                                                     |  |          |         |           |   |                      |  |   |              |   |  |                   |            |   |  |   |          
|Total current assets                                 |  |          |        |           |   | 128,369              |  |   | 62,496       |   |  |                   |           |   |  |   | 190,865  
|INVESTMENT IN SUBSIDIARIES AND INTERCOMPANY BALANCES |  |          | 515,766 |           |   | 1,325,921            |  |   | 142,353      |   |  |                   | (1,984,040 | ) |  |   |         
|PROPERTY, PLANT AND EQUIPMENTNet                    |  |          |        |           |   | 22,209               |  |   | 36,331       |   |  |                   |           |   |  |   | 58,540   
|GOODWILL                                             |  |          |        |           |   | 411,986              |  |   | 395,894      |   |  |                   |           |   |  |   | 807,880  
|OTHER INTANGIBLE ASSETSNet                          |  |          |        |           |   | 91,088               |  |   | 137,894      |   |  |                   |           |   |  |   | 228,982  
|DEBT ISSUE COSTSNet                                 |  |          |        |           |   | 26,805               |  |   |             |   |  |                   |           |   |  |   | 26,805   
|OTHER                                                |  |          |        |           |   | 726                  |  |   |             |   |  |                   |           |   |  |   | 726      
|                                                     |  |          |         |           |   |                      |  |   |              |   |  |                   |            |   |  |   |          
|TOTAL ASSETS                                         |  | $        | 515,766 |           | $ | 2,007,104            |  | $ | 774,968      |   |  | $                 | (1,984,040 | ) |  | $ | 1,313,798
|                                                     |  |          |         |           |   |                      |  |   |              |   |  |                   |            |   |  |   |          
|LIABILITIES AND STOCKHOLDERS EQUITY                 |  |          |         |           |   |                      |  |   |              |   |  |                   |            |  
|CURRENT LIABILITIES:                                 |  |          |         |           |   |                      |  |   |              |   |  |                   |            |   |  |   |          
|Current portion of long-term liabilities             |  | $        |        |           | $ | 4,450                |  | $ |             |   |  | $                 |           |   |  | $ | 4,450    
|Accounts payable                                     |  |          |        |           |   | 4,640                |  |   | 5,077        |   |  |                   |           |   |  |   | 9,717    
|Accrued liabilities                                  |  |          |        |           |   | 19,208               |  |   | 6,336        |   |  |                   |           |   |  |   | 25,544   
|                                                     |  |          |         |           |   |                      |  |   |              |   |  |                   |            |   |  |   |          
|Total current liabilities                            |  |          |        |           |   | 28,298               |  |   | 11,413       |   |  |                   |           |   |  |   | 39,711   
|LONG-TERM DEBTLess current portion                  |  |          |        |           |   | 691,313              |  |   |             |   |  |                   |           |   |  |   | 691,313  
|DEFERRED INCOME TAXES                                |  |          |        |           |   | 64,046               |  |   |             |   |  |                   |           |   |  |   | 64,046   
|OTHER NON-CURRENT LIABILITIES                        |  |          |        |           |   | 1,841                |  |   | 1,202        |   |  |                   |           |   |  |   | 3,043    
|                                                     |  |          |         |           |   |                      |  |   |              |   |  |                   |            |   |  |   |          
|Total liabilities                                    |  |          |        |           |   | 785,498              |  |   | 12,615       |   |  |                   |           |   |  |   | 798,113  
|                                                     |  |          |         |           |   |                      |  |   |              |   |  |                   |            |   |  |   |          
|STOCKHOLDERS EQUITY                                 |  |          | 515,766 |           |   | 1,221,606            |  |   | 762,353      |   |  |                   | (1,984,040 | ) |  |   | 515,685  
|                                                     |  |          |         |           |   |                      |  |   |              |   |  |                   |            |   |  |   |          
|TOTAL LIABILITIES AND STOCKHOLDERS EQUITY           |  | $        | 515,766 |           | $ | 2,007,104            |  | $ | 774,968      |   |  | $                 | (1,984,040 | ) |  | $ | 1,313,798
|                                                     |  |          |         |           |   |                      |  |   |              |   |  |                   |            |   |  |   |          





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TRANSDIGM HOLDING COMPANY



CONDENSED CONSOLIDATING BALANCE SHEET

AS OF SEPTEMBER 30, 2003

(In Thousands)





|                                                        |  |          |         |           |   |                      |  |   |              |   |  |                   |            |   |  |   |          
|------------------------------------------------------- |  | -------- | ------- | --------- | - | -------------------- |  | - | ------------ | - |  | ----------------- | ---------- | - |  | - | ---------
|                                                        |  | Holdings |         | TransDigm |   | SubsidiaryGuarantors |  |   | Eliminations |   |  | TotalConsolidated
|ASSETS                                                  |  |          |         |           |   |                      |  |   |              |   |  |                   |            |   |  |   |          
|CURRENT ASSETS:                                         |  |          |         |           |   |                      |  |   |              |   |  |                   |            |   |  |   |          
|Cash and cash equivalents                               |  | $        |        |           | $ | 19,352               |  | $ | (450         | ) |  | $                 |           |   |  | $ | 18,902   
|Trade accounts receivableNet                           |  |          |        |           |   | 14,520               |  |   | 22,189       |   |  |                   |           |   |  |   | 36,709   
|Income taxes receivable                                 |  |          | 36,703  |           |   |                     |  |   |             |   |  |                   |           |   |  |   | 36,703   
|Inventories                                             |  |          |        |           |   | 26,337               |  |   | 51,049       |   |  |                   |           |   |  |   | 77,386   
|Deferred income taxes                                   |  |          |        |           |   | 8,177                |  |   |             |   |  |                   |           |   |  |   | 8,177    
|Prepaid expenses and other                              |  |          |        |           |   | 3,296                |  |   | 554          |   |  |                   |           |   |  |   | 3,850    
|                                                        |  |          |         |           |   |                      |  |   |              |   |  |                   |            |   |  |   |          
|Total current assets                                    |  |          | 36,703  |           |   | 71,682               |  |   | 73,342       |   |  |                   |           |   |  |   | 181,727  
|INVESTMENTS IN SUBSIDIARIES AND INTERCOMPANY BALANCES   |  |          | 468,506 |           |   | 1,371,847            |  |   | (632,774     | ) |  |                   | (1,207,579 | ) |  |   |         
|PROPERTY, PLANT AND EQUIPMENTNet                       |  |          |        |           |   | 23,295               |  |   | 37,047       |   |  |                   |           |   |  |   | 60,342   
|GOODWILL                                                |  |          |        |           |   | 412,028              |  |   | 395,686      |   |  |                   |           |   |  |   | 807,714  
|OTHER INTANGIBLE ASSETSNet                             |  |          |        |           |   | 94,845               |  |   | 140,994      |   |  |                   |           |   |  |   | 235,839  
|DEBT ISSUE COSTSNet                                    |  |          |        |           |   | 28,771               |  |   |             |   |  |                   |           |   |  |   | 28,771   
|OTHER                                                   |  |          |        |           |   | 627                  |  |   |             |   |  |                   |           |   |  |   | 627      
|                                                        |  |          |         |           |   |                      |  |   |              |   |  |                   |            |   |  |   |          
|TOTAL ASSETS                                            |  | $        | 505,209 |           | $ | 2,003,095            |  | $ | 14,295       |   |  | $                 | (1,207,579 | ) |  | $ | 1,315,020
|                                                        |  |          |         |           |   |                      |  |   |              |   |  |                   |            |   |  |   |          
|LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIENCY)       |  |          |         |           |   |                      |  |   |              |   |  |                   |            |   |  |   |          
|CURRENT LIABILITIES:                                    |  |          |         |           |   |                      |  |   |              |   |  |                   |            |   |  |   |          
|Current portion of long-term liabilities                |  | $        |        |           | $ | 7,634                |  | $ |             |   |  | $                 |           |   |  | $ | 7,634    
|Accounts payable                                        |  |          |        |           |   | 5,512                |  |   | 5,709        |   |  |                   |           |   |  |   | 11,221   
|Accrued liabilities                                     |  |          |        |           |   | 21,696               |  |   | 7,929        |   |  |                   |           |   |  |   | 29,625   
|                                                        |  |          |         |           |   |                      |  |   |              |   |  |                   |            |   |  |   |          
|Total current liabilities                               |  |          |        |           |   | 34,842               |  |   | 13,638       |   |  |                   |           |   |  |   | 48,480   
|LONG-TERM DEBTLess current portion                     |  |          |        |           |   | 692,050              |  |   |             |   |  |                   |           |   |  |   | 692,050  
|DEFERRED INCOME TAXES                                   |  |          |        |           |   | 64,364               |  |   |             |   |  |                   |           |   |  |   | 64,364   
|OTHER NON-CURRENT LIABILITIES                           |  |          |        |           |   | 3,715                |  |   | 1,202        |   |  |                   |           |   |  |   | 4,917    
|                                                        |  |          |         |           |   |                      |  |   |              |   |  |                   |            |   |  |   |          
|Total liabilities                                       |  |          |        |           |   | 794,971              |  |   | 14,840       |   |  |                   |           |   |  |   | 809,811  
|                                                        |  |          |         |           |   |                      |  |   |              |   |  |                   |            |   |  |   |          
|TOTAL STOCKHOLDERS EQUITY (DEFICIENCY)                 |  |          | 505,209 |           |   | 1,208,124            |  |   | (545         | ) |  |                   | (1,207,579 | ) |  |   | 505,209  
|                                                        |  |          |         |           |   |                      |  |   |              |   |  |                   |            |   |  |   |          
|TOTAL LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIENCY) |  | $        | 505,209 |           | $ | 2,003,095            |  | $ | 14,295       |   |  | $                 | (1,207,579 | ) |  | $ | 1,315,020
|                                                        |  |          |         |           |   |                      |  |   |              |   |  |                   |            |   |  |   |          





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TRANSDIGM HOLDING COMPANY



CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

FOR THE TWENTY-SIX WEEKS ENDED MARCH 27, 2004

(In Thousands)



|                                 |  |          |        |   |           |   |         |                      |  |              |        |  |                   |         |   |  |   |         |  
|-------------------------------- |  | -------- | ------ | - | --------- | - | ------- | -------------------- |  | ------------ | ------ |  | ----------------- | ------- | - |  | - | ------- | -
|                                 |  | Holdings |        |   | TransDigm |   |         | SubsidiaryGuarantors |  | Eliminations |        |  | TotalConsolidated |        
|NET SALES                        |  | $        |       |   |           | $ | 60,703  |                      |  | $            | 78,882 |  | $                 |        |   |  | $ | 139,585 |  
|COST OF SALES                    |  |          |       |   |           |   | 31,676  |                      |  |              | 54,163 |  |                   |        |   |  |   | 85,839  |  
|                                 |  |          |        |   |           |   |         |                      |  |              |        |  |                   |         |   |  |   |         |  
|GROSS PROFIT                     |  |          |       |   |           |   | 29,027  |                      |  |              | 24,719 |  |                   |        |   |  |   | 53,746  |  
|OPERATING EXPENSES:              |  |          |        |   |           |   |         |                      |  |              |        |  |                   |         |   |  |   |         |  
|Selling and administrative       |  |          |       |   |           |   | 9,014   |                      |  |              | 5,477  |  |                   |        |   |  |   | 14,491  |  
|Amortization of intangibles      |  |          |       |   |           |   | 2,538   |                      |  |              | 3,100  |  |                   |        |   |  |   | 5,638   |  
|                                 |  |          |        |   |           |   |         |                      |  |              |        |  |                   |         |   |  |   |         |  
|Total operating expenses         |  |          |       |   |           |   | 11,552  |                      |  |              | 8,577  |  |                   |        |   |  |   | 20,129  |  
|                                 |  |          |        |   |           |   |         |                      |  |              |        |  |                   |         |   |  |   |         |  
|INCOME FROM OPERATIONS           |  |          |       |   |           |   | 17,475  |                      |  |              | 16,142 |  |                   |        |   |  |   | 33,617  |  
|OTHER INCOME (EXPENSES):         |  |          |        |   |           |   |         |                      |  |              |        |  |                   |         |   |  |   |         |  
|Interest expenseNet             |  |          | (4,931 | ) |           |   | (21,786 | )                    |  |              | 1,541  |  |                   |        |   |  |   | (25,176 | )
|Equity in income of subsidiaries |  |          | 8,277  |   |           |   | 10,946  |                      |  |              |       |  |                   | (19,223 | ) |  |   |        |  
|                                 |  |          |        |   |           |   |         |                      |  |              |        |  |                   |         |   |  |   |         |  
|INCOME BEFORE INCOME TAXES       |  |          | 3,346  |   |           |   | 6,635   |                      |  |              | 17,683 |  |                   | (19,223 | ) |  |   | 8,441   |  
|INCOME TAX PROVISION (BENEFIT)   |  |          | (1,879 | ) |           |   | (1,642  | )                    |  |              | 6,737  |  |                   |        |   |  |   | 3,216   |  
|                                 |  |          |        |   |           |   |         |                      |  |              |        |  |                   |         |   |  |   |         |  
|NET INCOME                       |  | $        | 5,225  |   |           | $ | 8,277   |                      |  | $            | 10,946 |  | $                 | (19,223 | ) |  | $ | 5,225   |  
|                                 |  |          |        |   |           |   |         |                      |  |              |        |  |                   |         |   |  |   |         |  





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TRANSDIGM HOLDING COMPANY



CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

FOR THE TWENTY-SIX WEEKS ENDED MARCH 29, 2003 (PREDECESSOR)

(In Thousands)



|                                 |  |          |        |   |           |   |         |                      |  |   |              |   |  |                   |         |   |  |   |         |  
|-------------------------------- |  | -------- | ------ | - | --------- | - | ------- | -------------------- |  | - | ------------ | - |  | ----------------- | ------- | - |  | - | ------- | -
|                                 |  | Holdings |        |   | TransDigm |   |         | SubsidiaryGuarantors |  |   | Eliminations |   |  | TotalConsolidated |        
|NET SALES                        |  | $        |       |   |           | $ | 59,624  |                      |  | $ | 89,797       |   |  | $                 |        |   |  | $ | 149,421 |  
|COST OF SALES                    |  |          |       |   |           |   | 25,828  |                      |  |   | 52,358       |   |  |                   |        |   |  |   | 78,186  |  
|                                 |  |          |        |   |           |   |         |                      |  |   |              |   |  |                   |         |   |  |   |         |  
|GROSS PROFIT                     |  |          |       |   |           |   | 33,796  |                      |  |   | 37,439       |   |  |                   |        |   |  |   | 71,235  |  
|OPERATING EXPENSES:              |  |          |        |   |           |   |         |                      |  |   |              |   |  |                   |         |   |  |   |         |  
|Selling and administrative       |  |          |       |   |           |   | 6,390   |                      |  |   | 5,297        |   |  |                   |        |   |  |   | 11,687  |  
|Amortization of intangibles      |  |          |       |   |           |   | 302     |                      |  |   | 269          |   |  |                   |        |   |  |   | 571     |  
|                                 |  |          |        |   |           |   |         |                      |  |   |              |   |  |                   |         |   |  |   |         |  
|Total operating expenses         |  |          |       |   |           |   | 6,692   |                      |  |   | 5,566        |   |  |                   |        |   |  |   | 12,258  |  
|                                 |  |          |        |   |           |   |         |                      |  |   |              |   |  |                   |         |   |  |   |         |  
|INCOME FROM OPERATIONS           |  |          |       |   |           |   | 27,104  |                      |  |   | 31,873       |   |  |                   |        |   |  |   | 58,977  |  
|OTHER INCOME (EXPENSES):         |  |          |        |   |           |   |         |                      |  |   |              |   |  |                   |         |   |  |   |         |  
|Interest expenseNet             |  |          | (1,755 | ) |           |   | (12,045 | )                    |  |   | (4,182       | ) |  |                   |        |   |  |   | (17,982 | )
|Equity in income of subsidiaries |  |          | 26,890 |   |           |   | 17,418  |                      |  |   |             |   |  |                   | (44,308 | ) |  |   |        |  
|                                 |  |          |        |   |           |   |         |                      |  |   |              |   |  |                   |         |   |  |   |         |  
|INCOME BEFORE INCOME TAXES       |  |          | 25,135 |   |           |   | 32,477  |                      |  |   | 27,691       |   |  |                   | (44,308 | ) |  |   | 40,995  |  
|INCOME TAX PROVISION (BENEFIT)   |  |          | (651   | ) |           |   | 5,587   |                      |  |   | 10,273       |   |  |                   |        |   |  |   | 15,209  |  
|                                 |  |          |        |   |           |   |         |                      |  |   |              |   |  |                   |         |   |  |   |         |  
|NET INCOME                       |  | $        | 25,786 |   |           | $ | 26,890  |                      |  | $ | 17,418       |   |  | $                 | (44,308 | ) |  | $ | 25,786  |  
|                                 |  |          |        |   |           |   |         |                      |  |   |              |   |  |                   |         |   |  |   |         |  





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TRANSDIGM HOLDING COMPANY



CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE TWENTY-SIX WEEKS ENDED MARCH 27, 2004

(In Thousands)



|                                                                                 |  |          |         |   |           |   |        |                      |  |   |              |   |  |                   |         |   |  |   |        |  
|-------------------------------------------------------------------------------- |  | -------- | ------- | - | --------- | - | ------ | -------------------- |  | - | ------------ | - |  | ----------------- | ------- | - |  | - | ------ | -
|                                                                                 |  | Holdings |         |   | TransDigm |   |        | SubsidiaryGuarantors |  |   | Eliminations |   |  | TotalConsolidated |        
|OPERATING ACTIVITIES:                                                            |  |          |         |   |           |   |        |                      |  |   |              |   |  |                   |         |   |  |   |        |  
|Net income                                                                       |  | $        | 5,225   |   |           | $ | 8,277  |                      |  | $ | 10,946       |   |  | $                 | (19,223 | ) |  | $ | 5,225  |  
|Adjustments to reconcile net income to net cash provided by operating activities |  |          | 28,426  |   |           |   | (4,639 | )                    |  |   | 12,602       |   |  |                   | 19,223  |   |  |   | 55,612 |  
|                                                                                 |  |          |         |   |           |   |        |                      |  |   |              |   |  |                   |         |   |  |   |        |  
|Net cash provided by operating activities                                        |  |          | 33,651  |   |           |   | 3,638  |                      |  |   | 23,548       |   |  |                   |        |   |  |   | 60,837 |  
|                                                                                 |  |          |         |   |           |   |        |                      |  |   |              |   |  |                   |         |   |  |   |        |  
|INVESTING ACTIVITIES                                                             |  |          |         |   |           |   |        |                      |  |   |              |   |  |                   |         |   |  |   |        |  
|Capital expenditures                                                             |  |          |        |   |           |   | (456   | )                    |  |   | (1,508       | ) |  |                   |        |   |  |   | (1,964 | )
|                                                                                 |  |          |         |   |           |   |        |                      |  |   |              |   |  |                   |         |   |  |   |        |  
|Net cash used in investing activities                                            |  |          |        |   |           |   | (456   | )                    |  |   | (1,508       | ) |  |                   |        |   |  |   | (1,964 | )
|                                                                                 |  |          |         |   |           |   |        |                      |  |   |              |   |  |                   |         |   |  |   |        |  
|FINANCING ACTIVITIES:                                                            |  |          |         |   |           |   |        |                      |  |   |              |   |  |                   |         |   |  |   |        |  
|Changes in intercompany activities                                               |  |          | (33,155 | ) |           |   | 56,352 |                      |  |   | (23,197      | ) |  |                   |        |   |  |   |       |  
|Payment of amounts borrowed under credit facility                                |  |          |        |   |           |   | (737   | )                    |  |   |             |   |  |                   |        |   |  |   | (737   | )
|Payment of license obligation                                                    |  |          |        |   |           |   | (1,500 | )                    |  |   |             |   |  |                   |        |   |  |   | (1,500 | )
|Purchase of common stock                                                         |  |          | (520    | ) |           |   |       |                      |  |   |             |   |  |                   |        |   |  |   | (520   | )
|Proceeds from exercise of stock options                                          |  |          | 24      |   |           |   |       |                      |  |   |             |   |  |                   |        |   |  |   | 24     |  
|                                                                                 |  |          |         |   |           |   |        |                      |  |   |              |   |  |                   |         |   |  |   |        |  
|Net cash provided by (used in) financing activities                              |  |          | (33,651 | ) |           |   | 54,115 |                      |  |   | (23,197      | ) |  |                   |        |   |  |   | (2,733 | )
|                                                                                 |  |          |         |   |           |   |        |                      |  |   |              |   |  |                   |         |   |  |   |        |  
|INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                 |  |          |        |   |           |   | 57,297 |                      |  |   | (1,157       | ) |  |                   |        |   |  |   | 56,140 |  
|CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                   |  |          |        |   |           |   | 19,352 |                      |  |   | (450         | ) |  |                   |        |   |  |   | 18,902 |  
|                                                                                 |  |          |         |   |           |   |        |                      |  |   |              |   |  |                   |         |   |  |   |        |  
|CASH AND CASH EQUIVALENTS, END OF PERIOD                                         |  | $        |        |   |           | $ | 76,649 |                      |  | $ | (1,607       | ) |  | $                 |        |   |  | $ | 75,042 |  
|                                                                                 |  |          |         |   |           |   |        |                      |  |   |              |   |  |                   |         |   |  |   |        |  





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TRANSDIGM HOLDING COMPANY



CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE TWENTY-SIX WEEKS ENDED MARCH 29, 2003 (PREDECESSOR)

(In Thousands)



|                                                                                 |  |          |         |   |           |   |         |                      |  |   |              |   |  |                   |         |   |  |   |         |  
|-------------------------------------------------------------------------------- |  | -------- | ------- | - | --------- | - | ------- | -------------------- |  | - | ------------ | - |  | ----------------- | ------- | - |  | - | ------- | -
|                                                                                 |  | Holdings |         |   | TransDigm |   |         | SubsidiaryGuarantors |  |   | Eliminations |   |  | TotalConsolidated |        
|OPERATING ACTIVITIES:                                                            |  |          |         |   |           |   |         |                      |  |   |              |   |  |                   |         |   |  |   |         |  
|Net income                                                                       |  | $        | 25,786  |   |           | $ | 26,890  |                      |  | $ | 17,418       |   |  | $                 | (44,308 | ) |  | $ | 25,786  |  
|Adjustments to reconcile net income to net cash provided by operating activities |  |          | (25,135 | ) |           |   | (7,191  | )                    |  |   | (8,367       | ) |  |                   | 44,308  |   |  |   | 3,615   |  
|                                                                                 |  |          |         |   |           |   |         |                      |  |   |              |   |  |                   |         |   |  |   |         |  
|Net cash provided by operating activities                                        |  |          | 651     |   |           |   | 19,699  |                      |  |   | 9,051        |   |  |                   |        |   |  |   | 29,401  |  
|                                                                                 |  |          |         |   |           |   |         |                      |  |   |              |   |  |                   |         |   |  |   |         |  
|INVESTING ACTIVITIES                                                             |  |          |         |   |           |   |         |                      |  |   |              |   |  |                   |         |   |  |   |         |  
|Acquisition of Norco, Inc. net assets                                            |  |          |        |   |           |   |        |                      |  |   | (52,954      | ) |  |                   |        |   |  |   | (52,954 | )
|Capital expenditures                                                             |  |          |        |   |           |   | (1,318  | )                    |  |   | (1,385       | ) |  |                   |        |   |  |   | (2,703  | )
|                                                                                 |  |          |         |   |           |   |         |                      |  |   |              |   |  |                   |         |   |  |   |         |  
|Net cash used in investing activities                                            |  |          |        |   |           |   | (1,318  | )                    |  |   | (54,339      | ) |  |                   |        |   |  |   | (55,657 | )
|                                                                                 |  |          |         |   |           |   |         |                      |  |   |              |   |  |                   |         |   |  |   |         |  
|FINANCING ACTIVITIES:                                                            |  |          |         |   |           |   |         |                      |  |   |              |   |  |                   |         |   |  |   |         |  
|Changes in intercompany activities                                               |  |          | 32,151  |   |           |   | (78,628 | )                    |  |   | 46,477       |   |  |                   |        |   |  |   |        |  
|Borrowings under credit facility, net of fees of $200                            |  |          |        |   |           |   | 24,800  |                      |  |   |             |   |  |                   |        |   |  |   | 24,800  |  
|Repayment of Holdings PIK Notes                                                  |  |          | (32,802 | ) |           |   |         |                      |  |   |              |   |  |                   |         |   |  |   | (32,802 | )
|Payment of license obligation                                                    |  |          |        |   |           |   | (1,200  | )                    |  |   |             |   |  |                   |        |   |  |   | (1,200  | )
|Payment of amounts borrowed under credit facility                                |  |          |        |   |           |   | (1,989  | )                    |  |   |             |   |  |                   |        |   |  |   | (1,989  | )
|                                                                                 |  |          |         |   |           |   |         |                      |  |   |              |   |  |                   |         |   |  |   |         |  
|Net cash provided by (used in) financing activities                              |  |          | (651    | ) |           |   | (57,017 | )                    |  |   | 46,477       |   |  |                   |        |   |  |   | (11,191 | )
|                                                                                 |  |          |         |   |           |   |         |                      |  |   |              |   |  |                   |         |   |  |   |         |  
|INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                 |  |          |        |   |           |   | (38,636 | )                    |  |   | 1,189        |   |  |                   |        |   |  |   | (37,447 | )
|CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                   |  |          |        |   |           |   | 50,866  |                      |  |   | (1,660       | ) |  |                   |        |   |  |   | 49,206  |  
|                                                                                 |  |          |         |   |           |   |         |                      |  |   |              |   |  |                   |         |   |  |   |         |  
|CASH AND CASH EQUIVALENTS, END OF PERIOD                                         |  | $        |        |   |           | $ | 12,230  |                      |  | $ | (471         | ) |  | $                 |        |   |  | $ | 11,759  |  
|                                                                                 |  |          |         |   |           |   |         |                      |  |   |              |   |  |                   |         |   |  |   |         |  





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PART I:    FINANCIAL INFORMATION

ITEM 2



MANAGEMENTS DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS



The
following discussion of the Companys financial condition and results of operations should be read together with Holdings consolidated financial statements and the related notes included elsewhere in the Report. References in this section
to TransDigm, we, us or our are to TransDigm Inc. and its subsidiaries. References to Holdings are to TransDigm Holding Company, which holds all of the outstanding capital stock of
TransDigm. References to the Company are to Holdings, together with TransDigm. Financial information presented herein for the periods through the merger of TD Acquisition Corporation into Holdings and TD Funding Corporation into
TransDigm Inc. on July 22, 2003 (see Recent Developments) is presented as Predecessor financial information. The Companys condensed consolidated financial statements for the period subsequent to the Merger reflect
a new basis of accounting incorporating the fair value adjustments made in recording the Merger while prior periods are presented using the historical cost basis of the Company.



This Quarterly Statement includes forward-looking statements within the meaning of Section 27A of the Securities Act and Section
21E of the Securities Exchange Act of 1934, as amended, including, in particular, the statements about the Companys plans, strategies and prospects under this Managements Discussion and Analysis of Financial Condition and Results
of Operations section. Although the Company believes that its plans, intentions and expectations reflected in or suggested by such forward-looking statements are reasonable, the Company can give no assurance that such plans, intentions or
expectations will be achieved. Important factors that could cause actual results to differ materially from the forward-looking statements made in this Quarterly Statement include but are not limited to:



| | · | We have a substantial amount of indebtedness which could adversely affect our financial health.
| | - | -----------------------------------------------------------------------------------------------



| | · | Increases in interest rates could increase our interest expense.
| | - | ----------------------------------------------------------------



| | · | Our substantial indebtedness could prevent us from fulfilling our obligations under our indebtedness. To service our indebtedness, we will require a significant amount of cash. Our
ability to generate cash depends on many factors beyond our control.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Despite current indebtedness levels, we may still be able to incur substantially more debt.
| | - | -------------------------------------------------------------------------------------------



| | · | The terms of our new senior secured credit facility and the indenture governing the senior subordinated notes may restrict our current and future operations, particularly our
ability to respond to changes or to take certain actions.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Future terrorist attacks may have a material, adverse impact on our business.
| | - | -----------------------------------------------------------------------------



| | · | Our business is sensitive to the number of flight hours that our customers planes spend aloft and to our customers profitability. These items are, in turn, affected by
general economic conditions. In addition, our sales to manufacturers of new large aircraft are cyclical.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | We rely heavily on certain customers for much of our sales.
| | - | -----------------------------------------------------------



| | · | We generally do not have guaranteed future sales of our products. Further, we enter into fixed price contracts with some of our customers, so we take the risk for cost overruns.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | A decline in the U.S. defense budget or the defense budget of foreign governments may adversely affect our sales of parts used in military aircraft.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------



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| | · | Our business may be adversely affected if we lost our government or industry approvals or if more onerous government regulations were enacted or industry oversight increased.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | We are dependent on our highly trained employees and any work stoppage or difficulty hiring similar employees would adversely affect our business.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------



| | · | If we lose our senior management, our business may be adversely affected.
| | - | -------------------------------------------------------------------------



| | · | Our business is dependent on the availability of certain components and raw materials that we buy from suppliers.
| | - | -----------------------------------------------------------------------------------------------------------------



| | · | We could incur substantial costs as a result of violations of or liabilities under environmental laws.
| | - | ------------------------------------------------------------------------------------------------------



| | · | Our international business exposes us to risks relating to increased regulation and political or economic instability, globally or within certain foreign countries.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | We intend to pursue future acquisitions and our business may be adversely affected if we cannot consummate acquisitions on satisfactory terms or effectively integrate new
operations.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | We have recorded a significant amount of intangible assets, which may never generate the returns we expect.
| | - | -----------------------------------------------------------------------------------------------------------



| | · | We face significant competition.
| | - | --------------------------------



| | · | We could be adversely affected as a result of a lawsuit if one of our components causes an aircraft to crash and we are not covered by our insurance policies.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------



All forward-looking statements attributable to the Company or
persons acting on its behalf are expressly qualified in their entirety by those cautionary statements. Many such factors are outside the control of the Company. Consequently, such forward-looking statements should be regarded solely as its current
plans, estimates and beliefs. The Company does not undertake and specifically declines any obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances
after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.



Overview



TransDigm is a leading
supplier of highly engineered aircraft components for use on nearly all commercial and military aircraft. Most of the Companys products share four common characteristics: (1) highly engineered and proprietary; (2) significant aftermarket
content, (3) sole source provider; and (4) large share of niche markets.



TransDigms customers include distributors of aerospace components, commercial airlines, aircraft maintenance facilities, aircraft and engine original equipment manufacturers, or OEMs, various armed forces of the United States and
foreign governments, and defense OEMs. TransDigm generates the majority of its operating income from sales of replacement parts in the commercial and defense aftermarkets. Most of TransDigms OEM sales are on an exclusive sole source basis,
meaning that, in most cases, TransDigm is the only certified provider of these parts in the aftermarket. Aftermarket parts sales are driven by the size and usage of the worldwide aircraft fleet, are historically relatively stable and generate
recurring revenues over the life of an aircraft that are many times the size of the original OEM purchases. TransDigm has over 40 years of experience in most of its product lines, which allows it to benefit from a large and growing installed base of
aircraft.



Recent Developments



On July 22, 2003, Holdings consummated a merger with TD Acquisition Corporation (TD
Acquisition) pursuant to which TD Acquisition merged with and into Holdings, with Holdings continuing as the surviving corporation as a wholly-owned subsidiary of a newly formed corporation, TD Holding Corporation (the Merger). In
connection



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with the Merger, TransDigm Inc. completed a tender offer for its outstanding 103/8% Senior Subordinated Notes due 2008 (the 103/8% Senior Subordinated Notes). Of the $200 million aggregate principal amount of outstanding 103/8% Senior Subordinated Notes, a total of approximately $197.8 million aggregate principal amount of 103/8% Senior Subordinated Notes were validly tendered and the remaining $2.2 million aggregate principal amount of 103/8% Senior Subordinated Notes were defeased pursuant to the terms of the indenture governing the 103/8% Senior Subordinated Notes. In December 2003, TransDigm Inc. redeemed the 103/8% Senior Subordinated Notes that were previously defeased. In addition, as a result of the consummation of the
Merger, the outstanding balance of $197.5 million under TransDigm Inc.s then existing senior credit facility became due and was repaid in its entirety upon the closing of the Merger. The cash merger consideration of $759.7 million paid to
Holdings former common and preferred stockholders, holders of in-the-money stock options and the holder of the warrant to purchase Holdings common stock (including merger related expenses of approximately $29.1 million borne by the then
existing equity holders of Holdings and excluding the $35.7 million fair value of stock options rolled over in connection with the Merger), acquisition fees and expenses of approximately $34.7 million, and repayment of substantially all of TransDigm
Inc.s then existing indebtedness in connection with the consummation of the Merger was financed through: (1) an investment of $471.3 million in TD Holding Corporation (TD Holding) by Warburg Pincus Private Equity VIII, L.P.
(Warburg Pincus) and certain other institutional investors which was ultimately contributed as equity to TD Acquisition which then contributed such proceeds as equity to TD Funding Corporation which merged with and into TransDigm Inc. in
connection with the Merger, (2) $295.0 million of borrowings under a new secured term loan facility, (3) $400.0 million of proceeds from the issuance of new 83/8% Senior Subordinated Notes due 2011 (83/8% Senior
Subordinated Notes) and (4) the use of existing cash balances. The 83/8% Senior Subordinated Notes are
fully and unconditionally guaranteed, jointly and severally and on an unsecured senior subordinated basis, by Holdings and all of TransDigms existing domestic subsidiaries. Following the Merger, Warburg Pincus controls a majority of the
outstanding common stock of TD Holding.



The following table sets forth a reconciliation of EBITDA and EBITDA, As Defined, to our net income reported under Generally Accepted Accounting Principles, or GAAP. EBITDA represents earnings before interest, taxes,
depreciation and amortization. EBITDA, As Defined, represents EBITDA, plus inventory purchase accounting adjustments, certain other non-recurring merger expenses, non-cash compensation and deferred compensation charges and acquisition integration
costs, as applicable. Management believes that the presentation of EBITDA and EBITDA, As Defined, will enhance an investors understanding of our operating performance. EBITDA and EBITDA, As Defined, are also the measures used by
TransDigms senior management to evaluate the performance of TransDigms various lines of business and for other required or discretionary purposes, such as measuring performance under our employee incentive programs. The credit agreement
requires the Company to comply with certain financial ratios, including a leverage ratio, fixed charged coverage ratio and interest coverage ratio. Leverage ratio is defined in the credit agreement, as of any date, as the ratio of the total
indebtedness of the Company on a consolidated basis on such date to Consolidated EBITDA (as defined in the credit agreement) for the period of four consecutive fiscal quarters most recently ended on or prior to such date. Fixed charge coverage ratio
is defined in the credit agreement as, for any period, the ratio of (a) Consolidated EBITDA for such period to (b) consolidated fixed charges for such period. Interest coverage ratio is defined as, for any period, the ratio of (a) Consolidated
EBITDA for such period to (b) consolidated interest expense for such period. The failure to comply with the financial covenants in the credit agreement could result in an event of default thereunder (and, in turn, an event of default under the
credit agreement could result in an event of default under the indenture governing the 83/8% Senior Subordinated
Notes). The credit agreement defines Consolidated EBITDA in a manner equal to how we define EBITDA, As Defined. Neither EBITDA nor EBITDA, As Defined, is a measurement of financial performance under GAAP and neither should be considered as an
alternative to (1) net income determined in accordance with GAAP or (2) operating cash flows determined in accordance with GAAP.



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Managements calculation of EBITDA and EBITDA, As Defined, may not be comparable to the calculation of similarly
titled measures reported by other companies.



|                                                          |  |                                    |      |                                                 |   |                                      |  |                                                   |      |  |   |     
|--------------------------------------------------------- |  | ---------------------------------- | ---- | ----------------------------------------------- | - | ------------------------------------ |  | ------------------------------------------------- | ---- |  | - | ----
|                                                          |  | ThirteenWeeks Ended March 27, 2004 |      | ThirteenWeeks Ended March 29, 2003(Predecessor) |   | Twenty-SixWeeks Ended March 27, 2004 |  | Twenty-SixWeeks Ended March 29, 2003(Predecessor)
|                                                          |  | (in millions)                     
|Net income                                                |  | $                                  | 9.2  |                                                 | $ | 13.7                                 |  | $                                                 | 5.2  |  | $ | 25.8
|Adjustments:                                              |  |                                    |      |                                                 |   |                                      |  |                                                   |      |  |   |     
|Depreciation and amortization expense                     |  |                                    | 4.8  |                                                 |   | 1.9                                  |  |                                                   | 9.4  |  |   | 3.9 
|Interest expense, net                                     |  |                                    | 12.5 |                                                 |   | 9.0                                  |  |                                                   | 25.2 |  |   | 18.0
|Income tax provision                                      |  |                                    | 5.6  |                                                 |   | 7.9                                  |  |                                                   | 3.2  |  |   | 15.2
|                                                          |  |                                    |      |                                                 |   |                                      |  |                                                   |      |  |   |     
|EBITDA                                                    |  |                                    | 32.1 |                                                 |   | 32.5                                 |  |                                                   | 43.0 |  |   | 62.9
|Adjustments:                                              |  |                                    |      |                                                 |   |                                      |  |                                                   |      |  |   |     
|Inventory purchase accounting adjustments (1)             |  |                                    |     |                                                 |   |                                     |  |                                                   | 18.1 |  |   |    
|Acquisition integration costs (2)                         |  |                                    | 0.3  |                                                 |   | 0.6                                  |  |                                                   | 1.0  |  |   | 0.6 
|Non-cash compensation and deferred compensation costs (3) |  |                                    | 1.6  |                                                 |   |                                     |  |                                                   | 3.1  |  |   |    
|                                                          |  |                                    |      |                                                 |   |                                      |  |                                                   |      |  |   |     
|EBITDA, As Defined                                        |  | $                                  | 34.0 |                                                 | $ | 33.1                                 |  | $                                                 | 65.2 |  | $ | 63.5
|                                                          |  |                                    |      |                                                 |   |                                      |  |                                                   |      |  |   |     

---



|(1) | This represents the portion of the purchase accounting adjustment to inventory pertaining to the Merger that was charged to cost of sales when the inventory was sold.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(2) | Represents costs incurred to integrate the Norco business into the Companys operations.
|--- | ----------------------------------------------------------------------------------------



|(3) | Represents the expenses recognized by the Company under a stock option plan and two deferred compensation plans of TD Holding that relate to the Companys employees who
participate in the plans.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Critical Accounting Policies



Our consolidated financial statements have been prepared in accordance
with GAAP, which often requires the judgment of management in the selection and application of certain accounting principles and methods. Management believes that the quality and reasonableness of our most critical policies enable the fair
presentation of our financial position and results of operations. However, investors are cautioned that the sensitivity of financial statements to these methods, assumptions and estimates could create materially different results under different
conditions or using different assumptions.



We have identified the following as
the most critical accounting policies upon which our financial status depends. These critical policies were determined by considering accounting policies that involve the most complex or subjective decisions or assessments. Our most critical
accounting policies are as follows:



Revenue Recognition and Related
Allowances:Revenues are recognized based upon shipment of products to the customer, at which time title and risk of loss passes to the customer. Substantially all sales are made pursuant to firm, fixed-price purchase orders received from
customers. Provisions for returns, estimated contract losses, uncollectible accounts and the cost of repairs under contract warranty provisions are provided for in the same period as the related revenues are recorded and are principally based on
historical results modified, as appropriate, by the



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most current information available. We have a history of making reasonably dependable estimates of such allowances;
however, due to uncertainties inherent in the estimation process, it is possible that actual results may vary from the estimates and the differences could be material.



Management estimates the allowance for doubtful accounts based on the aging of the accounts receivable and customer creditworthiness. The
allowance also incorporates a provision for the estimated impact of disputes with customers. Managements estimate of the allowance amounts that are necessary includes amounts for specifically identified losses and a general amount for
estimated losses. The determination of the amount of the allowance for doubtful accounts is subject to significant levels of judgment and estimation by management. If circumstances change or economic conditions deteriorate, management may need to
increase the allowance for doubtful accounts.



The Company provides limited
warranties in connection with the sale of its products. The warranty period for products sold varies throughout the Companys operations, ranging from ninety days to five years; however, the warranty period for the majority of the
Companys sales generally does not exceed one year. In addition, certain contracts with distributors contain right of return provisions. The Company accrues for estimated returns and warranty claims based on knowledge of product performance
issues and excess inventories provided by its customers and industry sources and also provides a general amount based on historical results. Actual product returns and warranty claims have not differed materially from the estimates originally
established; however, due to uncertainties in the estimation process, it is possible that actual results in the future may vary from the estimates and the differences could be material.



Although the majority of the Companys sales, particularly sales into the aftermarket, are made pursuant to firm, fixed-price purchase
orders received from customers without long-term agreements, the Company has executed long-term supply agreements with certain OEMs, which cover particular products and require the Company to supply all the amounts ordered by the customers during
the term (generally three to five years) of the agreements at specified prices. The Company expects to incur losses under some of the contracts. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are
identified, based on estimated future shipment quantities provided by customers or industry sources and other factors. The cumulative effect of revisions to estimated future contract revenue and completion costs is recorded in the accounting period
in which the amounts become known and can be reasonably estimated. Such revisions could occur any time there are changes to estimated future revenues or costs, and the effects could be material.



Inventories:Inventories are stated at the lower of cost or market. Cost of
inventories is determined by the average cost and the first-in, first-out (FIFO) methods. Because the Company sells products that are installed on airframes that can be in-service for twenty or more years, it must keep a supply of such products on
hand while the airframes are in use. Provision for potentially obsolete or slow-moving inventory is made based on our analysis of inventory levels, past usage and future sales forecasts. Although management believes that the Companys estimates
of obsolete and slow-moving inventory are reasonable, actual results may differ materially from the estimates and additional provisions may be required in the future. In addition, in accordance with industry practice, all inventories are classified
as current assets as all inventories are available and necessary to support current sales, even though a portion of the inventories may not be sold within one year.



Intangible Assets:The Merger has resulted in significant increases in indefinite-lived intangible assets and goodwill. Intangible
assets other than goodwill are recognized if the benefit of the intangible asset is obtained through contractual or other legal rights, or if the intangible asset can be sold, transferred, licensed or exchanged, regardless of the Companys
intent to do so. Goodwill and indefinite-lived intangible assets are recorded at fair value on the date of acquisition and, under the provisions of Statement of Financial Accounting Standards (SFAS) No. 142, Goodwill and Other
Intangible Assets (SFAS 142), are reviewed at least annually for impairment based on cash flow projections and fair value estimates. The determination of undiscounted cash flows is based on the Companys strategic plans
and long-range planning forecasts. The revenue growth rates included in the plans are based on industry and Company specific data. The profit margin assumptions included in the plans are projected based on the current cost structure and anticipated
cost changes. If different assumptions were used in these plans, the related undiscounted cash flows used in measuring impairment could be different and the recognition of an impairment loss might be required. Intangible assets, such as goodwill,
that have an indefinite useful life are not amortized. All other intangible assets are amortized over their estimated useful lives.



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Stock Options and Deferred Compensation Plans:Prior to the Merger, the Company applied Accounting Principles
Board Opinion No. 25, Accounting for Stock Issued to Employees, and related interpretations in accounting for its stock option plans. No compensation cost was recognized for Holdings stock option plans because the exercise
price of the options issued equaled the fair value of the common stock on the grant date.



Effective with the consummation of the Merger and the issuance of TD Holding stock options to Company employees, the Company adopted the provisions of SFAS No. 123, Accounting for Stock-Based
Compensation,which requires the measurement of compensation expense under the stock option plan to be based on the estimated fair values of the awards under the plan on the grant dates and amortizes the expense over the options
vesting periods. In addition, the Company accounts for the cost of the deferred compensation plans of TD Holding established in conjunction with the Merger in accordance with Opinion No. 12 of the Accounting Principles Board, which requires the cost
of deferred compensation arrangements to be accrued over the service period of the related employees in a systematic and rational manner.



Because the stock options and deferred compensation plan interests issued to Company employees in conjunction with, or subsequent to, the Merger relate to the stock and
employee benefit plans of TD Holding, the cost of such compensation arrangements is recognized by the Company as an expense and capital contribution from TD Holding.



Purchase Accounting and Pending Purchase Price Adjustment: The Merger (see Recent Developments) was accounted for
as a purchase and preliminary fair value adjustments to the Companys assets and liabilities were recorded. The Company is in the process of obtaining third-party valuations of certain tangible and intangible assets; thus, the final allocation
of TD Holdings investment in the Company to its assets and liabilities could result in adjustments to recorded tangible and intangible assets, including related depreciation and amortization expense.



On February 24, 2003, Marathon acquired certain assets and assumed certain liabilities of the
Norco, Inc (Norco) business from TransTechnology Corporation for $51.0 million in cash. In addition, the Company was required to pay approximately $1.0 million of asset transfer tax payments in accordance with the purchase agreement.
During August 2003, a $1.1 million purchase price adjustment was received by the Company based on a final determination of working capital as of the closing of the Norco acquisition. The Company accounted for the Norco acquisition as a purchase and
included the results of operations of the acquired business in its consolidated financial statements from the effective date of the acquisition.



Results of Operations



The following table sets forth, for the periods indicated, certain operating data of the Company as a percentage of net sales.



|                                    |  |                             |   |  |                               |   |  |               |   |  |               |  
|----------------------------------- |  | --------------------------- | - |  | ----------------------------- | - |  | ------------- | - |  | ------------- | -
|                                    |  | Thirteen Week Periods Ended |   |  | Twenty-Six Week Periods Ended |  
|                                    |  | March 27,2004               |   |  | March 29,2003                 |   |  | March 27,2004 |   |  | March 29,2003 |  
|Net sales                           |  | 100                         | % |  | 100                           | % |  | 100           | % |  | 100           | %
|                                    |  |                             |   |  |                               |   |  |               |   |  |               |  
|Gross profit                        |  | 52                          |   |  | 46                            |   |  | 38            |   |  | 48            |  
|Selling and administrative expenses |  | 10                          |   |  | 8                             |   |  | 10            |   |  | 8             |  
|Amortization of intangibles         |  | 4                           |   |  | 0                             |   |  | 4             |   |  | 1             |  
|                                    |  |                             |   |  |                               |   |  |               |   |  |               |  
|Income from operations              |  | 38                          |   |  | 38                            |   |  | 24            |   |  | 39            |  
|Interest expensenet                |  | 17                          |   |  | 11                            |   |  | 18            |   |  | 12            |  
|Income tax provision                |  | 8                           |   |  | 10                            |   |  | 2             |   |  | 10            |  
|                                    |  |                             |   |  |                               |   |  |               |   |  |               |  
|Net income                          |  | 13                          | % |  | 17                            | % |  | 4             | % |  | 17            | %
|                                    |  |                             |   |  |                               |   |  |               |   |  |               |  



23



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##### Table of Contents

Changes in Results of Operations



Thirteen week period ended March 27, 2004 compared with the thirteen week period ended March 29, 2003.



|· | Net Sales. Net sales decreased by $7.7 million, or 9.7%, to $71.9 million for the quarter ended March 27, 2004, from $79.6 million for the comparable quarter
last year. The decrease is primarily due to an expected decline in sales of $12.4 million to Airbus due to lower shipments relating to the retro fit portion of the cockpit door security products and a decrease in OEM sales, partially offset by an
increase in sales of $2.9 million due to the Norco acquisition and an increase in aftermarket sales.
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|· | Gross Profit. Gross profit (net sales less cost of sales) increased by $0.7 million, or 1.9%, to $37.6 million for the quarter ended March 27, 2004 from $36.9
million from the comparable quarter last year. Gross profit as a percentage of sales increased approximately 6% to 52% for the thirteen week periods ended March 27, 2004 from 46% for the thirteen weeks ended March 29, 2003. The increase in gross
profit and gross profit as a percentage of sales was primarily due to favorable product mix, the strength of the Companys proprietary products and market positions and cost reductions realized through the relocation of the Norco manufacturing
process in Connecticut into its existing facility in Waco, Texas.
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|· | Selling and Administrative Expenses. Selling and administrative expenses increased by $1.4 million, or 23.6%, to $7.4 million for the quarter ended March 27,
2004 from $6.0 million for the comparable quarter last year primarily due to $1.3 million of non-cash stock option and deferred compensation plan expenses that were recognized by the Company from TD Holding. The non-cash stock option and deferred
compensation costs pertain to Company employees who participate in a stock option plan and two deferred compensation plans of TD Holding established contemporaneously with the Merger. Selling and administrative expenses increased as a percentage of
net sales to 10.3% for the current quarter from 7.5% for the comparable quarter last year primarily due to the non-cash stock option and deferred compensation expense described above.
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|· | Amortization of Intangibles. Amortization of intangibles increased by $2.6 million to $2.9 million for the quarter ended March 27, 2004 from $0.3 million for
the comparable quarter last year due to the amortization expense on additional identifiable intangible assets recognized in accounting for the Merger.
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|· | Income from Operations. Operating income decreased by $3.3 million, or 10.7%, to $27.4 million for the quarter ended March 27, 2004 from $30.6 million for the
comparable quarter last year, due to the factors described above.
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|· | Interest Expense. Interest expense increased $3.5 million, or 38.3%, to $12.5 million for the quarter ended March 27, 2004 from $9.0 million for the comparable quarter last
year principally due to the additional indebtedness incurred as a result of the Merger.
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|· | Income Taxes. Income tax expense as a percentage of income before income taxes was 38% for the quarter ended March 27, 2004 and was comparable to the 37%
effective tax rate for the quarter ended March 29, 2003.
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|· | Net Income. The Company earned $9.2 million for the second quarter of fiscal 2004 compared to $13.7 million for the second quarter of fiscal 2003, primarily as a result of
the factors referred to above.
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Twenty-six week period ended
March 27, 2004 compared with the twenty-six week period ended March 29, 2003.



|· | Net Sales. Net sales decreased by $9.8 million, or 6.6%, to $139.6 million for the twenty-six week period ended March 27, 2004, from $149.4 million for the
comparable period last year. The decrease is primarily due to an expected decline in sales of $19.4 million to Airbus due to lower shipments relating to the retro fit portion of the cockpit door security products and a decrease in OEM sales,
partially offset by an increase in sales of $6.7 million due to the Norco acquisition and an increase in aftermarket sales.
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



24



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##### Table of Contents

|· | Gross Profit. Gross profit (net sales less cost of sales) decreased by $17.5 million, or 24.6%, to $53.7 million for the twenty-six week period ended March 27,
2004 from $71.2 million from the comparable period last year. This decrease is primarily attributable to the $18.1 million, or 12.9% of net sales, non-cash charge included in cost of sales pertaining to the inventory purchase price adjustment
recorded in accounting for the Merger and $1.0 million, or 0.7% of net sales, of non-recurring integration costs pertaining to the Norco acquisition. Gross profit as a percentage of sales decreased to 38.5% for the twenty-six week period ended March
27, 2004 from 47.7% for the comparable period last year principally due to the non-cash and non-recurring charges discussed above partially offset by favorable product mix, continuing cost control measures and the strength of the Companys
proprietary products and market positions. Excluding the non-cash and non-recurring charges, the gross profit margin would have been 52.2% for the current period compared to 48.0% in the comparable period last year that was not impacted by the
non-cash charge.
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|· | Selling and Administrative Expenses. Selling and administrative expenses increased by $2.8 million, or 24.0%, to $14.5 million for the twenty-six week period
ended March 27, 2004 from $11.7 million for the comparable period last year primarily due to $2.8 million of non-cash stock option and deferred compensation plan expenses that were recognized by the Company from TD Holding. Selling and
administrative expenses increased as a percentage of net sales to 10.4% for the current period from 7.8% for the comparable period last year primarily due to the non-cash stock option and deferred compensation expense described above. Excluding the
non-cash stock option and deferred compensation plan expenses selling, general and administrative expenses as a percentage of sales would have been 8.4% for the current period compared to 7.8% in the comparable period last year.
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|· | Amortization of Intangibles. Amortization of intangibles increased by $5.0 million to $5.6 million for the twenty-six week period ended March 27, 2004 from $0.6
million for the comparable period last year due to the amortization expense on additional identifiable intangible assets recognized in accounting for the Merger.
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|· | Income from Operations. Operating income decreased by $25.4 million, or 43.0%, to $33.6 million for the twenty-six week period ended March 27, 2004 from $59.0
million for the comparable period last year, due to the factors discussed above. Adjusted for the non-cash charges of $18.1 million and 2.8 million discussed above, operating income would have been $54.5 in the current period, or a 7.6% decrease
from $59.0 million for the comparable period last year.
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|· | Interest Expense. Interest expense increased $7.2 million, or 40.0%, to $25.2 million for the twenty-six week period ended March 27, 2004 from $18.0 million for
the comparable period last year principally due to the additional indebtedness incurred as a result of the Merger.
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|· | Income Taxes. Income tax expense as a percentage of income before income taxes was 38% for the twenty-six week period ended March 27, 2004 compared to the 37%
effective tax rate for the comparable period last year.
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|· | Net Income. The Company earned $5.2 million for the twenty-six week period ended March 27, 2004 compared to $25.8 million for the same period last year, primarily as a result
of the factors referred to above.
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Backlog



Management believes that sales order backlog (i.e., orders for products that have not yet
been shipped) is a useful indicator of future sales. As of March 27, 2004, the Company estimated its sales order backlog at $133.3 million compared to an estimated $125.7 million as of March 29, 2003. The increase in backlog is primarily due to an
increase in orders across various product lines in the commercial aftermarket segment partially offset by a decrease of approximately $5 million in orders for the Airbus cockpit door security mechanism due to the completion of the retro fit portion
of the Companys products. The majority of the purchase orders outstanding as of March 27, 2004 are scheduled for delivery within the next twelve months. Purchase orders may be subject to cancellation by the customer prior to shipment. The
level of unfilled purchase orders at any given date during the year will be materially affected by the timing of the Companys receipt of purchase orders and the speed with which those orders are filled. Accordingly, the Companys backlog
as of March 27, 2004 may not necessarily represent the actual amount of shipments or sales for any future period.



25



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##### Table of Contents

Foreign Operations



Although the Company manufactures all of its products in the United States, some components are purchased from foreign suppliers and a portion of the Companys
products are resold to foreign end-users. This activity is subject to numerous additional risks, including the impact of foreign government regulations, currency fluctuations, political uncertainties and differences in business practices. There can
be no assurance that foreign governments will not adopt regulations or take other action that would have a direct or indirect adverse impact on the business or market opportunities of the Company within such governments countries. Furthermore,
there can be no assurance that the political, cultural and economic climate outside the United States will be favorable to the Companys operations and growth strategy.



Inflation



Many of the Companys raw materials and operating expenses are sensitive to the effects of inflation, which could result in changing operating costs. The effects of
inflation on the Companys businesses during the thirteen and twenty-six week periods ended March 27, 2004 and March 29, 2003 were not significant.



Liquidity and Capital Resources



The Company generated $60.8 million of cash from operating activities during the twenty-six weeks ended March 27, 2004 compared to $29.4 million generated during the
twenty-six weeks ended March 29, 2003. The increase of $31.4 million is primarily due to the receipt of income tax refunds of $33.4 million during the twenty-six week period ended March 27, 2004 resulting primarily from merger expense of $176
million incurred in fiscal 2003.



Cash used in investing activities decreased
to $2.0 million during the twenty-six weeks ended March 27, 2004 compared to $55.7 million used during the twenty-six weeks ended March 29, 2003. The decrease is a result of the acquisition of the net assets of Norco, Inc. during the second quarter
of fiscal 2003.



Cash used in financing activities during the twenty-six weeks
ended March 27, 2004 decreased to $2.7 million compared to $11.2 million during the twenty-six weeks ended March 29, 2003. The decrease of $8.5 million is primarily due to the repayment in the second quarter of fiscal 2003 of the Holdings PIK Notes
of $32.8 million offset by the proceeds of new borrowings of $24.8 million under the then existing senior credit facility relating to the acquisition of the net assets of Norco, Inc.



In connection with the consummation of the Merger, TransDigm Inc. obtained new senior secured credit facilities. The new senior secured
credit facilities consisted of a $295 million term loan facility, which was fully drawn on the closing date of the Merger, and a $100 million revolving loan facility. On April 1, 2004, the Company amended and restated its existing credit agreement
(the Amended and Restated Credit Agreement). The Amended and Restated Credit Agreement consists of a term loan facility of $294.3 million, which was fully drawn on the closing date, and a $100 million revolving loan facility, of which
$99.5 million was available as of March 27, 2004.



The amended and restated
revolving loan facility matures in July 2009 and the amended and restated term loan facility matures in July 2010. The Amended and Restated Credit Agreement requires scheduled quarterly payments of principal on the term loans beginning June 30, 2004
in aggregate annual principal amounts equal to 1% of the original aggregate principal amount of the term loans during the life of the loans, with the balance payable at final maturity. Subject to exceptions, the Amended and Restated Credit Agreement
also requires mandatory prepayments of term loans based on certain percentages of excess cash flows, as defined, commencing 95 days after the end of the fiscal year ending on September 30, 2006, net cash proceeds of asset sales, the issuance of
equity securities or the issuance of certain debt securities.



In addition, the
Company has the right to request (but no lender is committed to provide) additional term loans under such facilities, subject to the satisfaction of customary conditions, including being in compliance with the financial covenants in the credit
agreement after giving effect, on a pro forma basis, to any such incremental term loan borrowing.



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The interest rates per annum applicable to loans other than swingline loans (i.e., a short term line of credit that is
provided as part of the revolving credit facility by the administrative agent, which can be converted at any time by the administrative agent into revolving credit loans under the revolving credit facility), under the Amended and Restated Credit
Agreement are, at the Companys option, equal to either an alternate base rate or an adjusted LIBO rate for one, two, three or six-month interest periods chosen by the Company, in each case, plus an applicable margin percentage. The alternate
base rate is the greater of (1) Credit Suisse First Bostons prime rate or (2) 50 basis points over the weighted average rates on overnight Federal funds as published by the Federal Reserve Bank of New York. The adjusted LIBO rate is determined
by reference to settlement rates established for deposits in dollars in the London interbank market for a period equal to the interest period of the loan and the maximum reserve percentages established by the Board of Governors of the United States
Federal Reserve to which the Companys lenders are subject. The applicable margin percentage in the Amended and Restated Credit Agreement is a percentage per annum equal to (1) 1.25% for alternate base rate term loans, (2) 2.25% for adjusted
LIBO rate term loans, (3) 2.50% for alternate base rate revolving loans, and (4) 3.50% for LIBO adjusted rate revolving loans. The applicable margin percentages under the revolving loan facility are subject to adjustment in increments based upon the
Companys leverage ratio under the Amended and Restated Credit Agreement so long as no event of default has occurred and is continuing.



All borrowings under the new revolving loan facility are subject to the satisfaction of customary conditions, including absence of a default and accuracy of
representations and warranties.



In connection with the Merger, the Company
also issued $400 million aggregate principal amount of 83/8% Senior Subordinated Notes. Such notes do not
require principal payments prior to their maturity in July 2011. The notes are fully and unconditionally guaranteed, jointly and severally and on an unsecured senior subordinated basis, by Holdings and all of our existing domestic subsidiaries.



Both the Amended and Restated Credit Agreement and the new 83/8% Senior Subordinated Notes contain restrictive covenants that, among other things, limit the incurrence of
additional indebtedness, the payment of dividends, transactions with affiliates, asset sales, acquisitions, mergers and consolidations, liens and encumbrances, and prepayments of other indebtedness. In addition, the Amended and Restated Credit
Agreement and the new 83/8% Senior Subordinated Notes require the Company to meet certain financial ratios. Any
failure to comply with the restrictions of the Amended and Restated Credit Agreement, the new 83/8% Senior
Subordinated Notes or any other subsequent financing agreements may result in an event of default. An event of default may allow the creditors, if the agreements so provide, to accelerate the related debt as well as any other debt to which a
cross-acceleration or cross-default provision applies. In addition, the lenders under the Amended and Restated Credit Agreement may be able to terminate any commitments they had made to supply the Company with further funds.



The Company repaid or defeased all of its long-term
indebtedness that was outstanding immediately prior to the consummation of the Merger. The Company redeemed the defeased 103/8% Senior Subordinated Notes in December 2003.



The
Companys primary future cash needs will consist of debt service and capital expenditures. The Company incurs capital expenditures for the purpose of maintaining and replacing existing equipment and facilities and, from time to time, for
facility expansion. Capital expenditures totaled approximately $2.0 million and $2.7 million during the twenty-six weeks ended March 27, 2004 and March 29, 2003, respectively. The Company expects its capital expenditures in fiscal 2004 to be
approximately $6 million and to increase moderately thereafter.



The Company
may from time to time seek to retire its outstanding debt through cash purchases and/or exchanges for equity securities, in open market purchases, privately negotiated transactions or otherwise. Such repurchases or exchanges, if any, will depend on
prevailing market conditions, the Companys liquidity requirements, contractual restrictions and other factors. The amounts involved may be material. In addition, the Company may issue additional debt if prevailing market conditions are
favorable to doing so.



The Company intends to pursue acquisitions that present
opportunities consistent with the Companys value generation strategy. The Company regularly engages in discussions with respect to potential acquisitions and investments. However, there are no binding agreements with respect to any
acquisitions at this time, and there can be no assurance that the Company will be able to reach an agreement with respect to any future acquisition. The



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Companys acquisition strategy may require substantial capital, and no assurance can be given that the Company will
be able to raise any necessary funds on acceptable terms or at all. If the Company incurs additional debt to finance acquisitions, total interest expense will increase.



The Companys ability to make scheduled payments of principal of, or to pay the interest on, or to refinance, the Companys
indebtedness, or to fund non-acquisition related capital expenditures and research and development efforts, will depend on the Companys ability to generate cash in the future. This is subject to general economic, financial, competitive,
legislative, regulatory and other factors that are beyond its control. Based on its current levels of operations and anticipated cost savings and operating improvements and absent any disruptive events, management believes that internally generated
funds and borrowings available under our revolving loan facility should provide sufficient resources to finance its operations, non-acquisition related capital expenditures, research and development efforts and long-term indebtedness obligations
through at least fiscal 2004. There can be no assurance, however, that the Companys business will generate sufficient cash flow from operations, that currently anticipated cost savings and operating improvements will be realized on schedule,
or at all, or that future borrowings will be available to the Company under its Amended and Restated Credit Agreement in an amount sufficient to enable it to pay its indebtedness or to fund its other liquidity needs. The Company may need to
refinance all or a portion of its indebtedness on or before maturity. Also, to the extent the Company accelerates its growth plans, consummates acquisitions or has lower than anticipated sales or increases in expenses, the Company may also need to
raise additional capital. In particular, increased working capital needs occur whenever the Company consummates acquisitions or experiences strong incremental demand. There can be no assurance that the Company will be able to raise additional
capital on commercially reasonable terms or at all.



Contractual Obligations



The following is a summary of contractual cash obligations of the Company
for the next several fiscal years (excluding interest), as of March 27, 2004 (in millions):



|                                   |  |         |     |      |   |      |  |      |     |      |   |                    |  |       |     |  |   |       |  |   |      
|---------------------------------- |  | ------- | --- | ---- | - | ---- |  | ---- | --- | ---- | - | ------------------ |  | ----- | --- |  | - | ----- |  | - | -----
|                                   |  | 2004(1) |     | 2005 |   | 2006 |  | 2007 |     | 2008 |   | 2009 andThereafter |  | Total
|Term Loan Facility                 |  | $       | 2.2 |      | $ | 2.9  |  | $    | 2.9 |      | $ | 2.9                |  | $     | 2.9 |  | $ | 280.5 |  | $ | 294.3
|83/8%
Senior Subordinated Notes    |  |         |    |      |   |     |  |      |    |      |   |                   |  |       |    |  |   | 400.0 |  |   | 400.0
|Operating Leases                   |  |         | 0.7 |      |   | 1.3  |  |      | 1.1 |      |   | 0.8                |  |       | 0.7 |  |   | 3.4   |  |   | 8.0  
|Other Long-Term Obligations        |  |         |    |      |   | 1.5  |  |      |    |      |   |                   |  |       |    |  |   |      |  |   | 1.5  
|                                   |  |         |     |      |   |      |  |      |     |      |   |                    |  |       |     |  |   |       |  |   |      
|Total Contractual Cash Obligations |  | $       | 2.9 |      | $ | 5.7  |  | $    | 4.0 |      | $ | 3.7                |  | $     | 3.6 |  | $ | 683.9 |  | $ | 703.8
|                                   |  |         |     |      |   |      |  |      |     |      |   |                    |  |       |     |  |   |       |  |   |      

(1) Beginning March 28, 2004.



New Accounting Standards



During the quarter ended December 27, 2003, the Company implemented the provisions of the Financial Accounting Standards Boards (the FASBs)
Emerging Issues Task Force Abstract No 00-21, Revenue Arrangements with Multiple Deliverables,which provides criteria for determining how to account for multiple-deliverable revenue arrangements. The implementation of this pronouncement had
no impact on the Companys consolidated financial position or results of operations.



During December 2003, the FASB issued a revised Interpretation No. 46, Consolidation of Variable Interest Entities (FIN 46R), which requires existing, unconsolidated variable interest entities to be
consolidated by their primary beneficiaries if the entities do not effectively disperse risks among the parties involved. The Company is not associated with variable interest entities; therefore, the adoption of this statement did not have any
effect on the Companys consolidated financial position or results of operations.



During December 2003, the FASB also issued a revision to Statement of Financial Accounting Standards No. 132, Employers Disclosures about Pensions and Other Postretirement Benefits, an amendment of FASB Statements No. 87, 88, and
106, which expands the disclosure requirements regarding plan assets and benefit obligations for the



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Companys two defined benefit pension plans. The implementation of this pronouncement had no impact on the
Companys consolidated financial position or results of operations.



Additional Disclosure Required by Indenture



Separate
financial statements of TransDigm are not presented since Holdings has no significant operations or assets separate from its investment in TransDigm and since the 83/8% Senior Subordinated Notes are guaranteed by Holdings and all direct and indirect domestic restricted subsidiaries of TransDigm. As of March 27, 2004, the only subsidiary of
TransDigm that has not guaranteed the notes is one wholly owned, foreign subsidiary that has inconsequential assets, liabilities and equity.



ITEM 3



QUANTITATIVE AND QUALITATIVE DISCLOSURE
ABOUT MARKET RISK



At March 27, 2004, the Company had borrowings under its
senior secured credit facilities of $294.3 million that were subject to interest rate risk. Borrowings under the Companys senior secured credit facility bear interest, at its option, at a rate equal to either an alternate base rate or an
adjusted LIBO rate for a one, two, three or six-month interest period chosen by the Company, in each case, plus an applicable margin percentage that will be subject to periodic adjustment based on the achievement of certain performance goals.
Accordingly, the Companys cash flows and earnings will be exposed to the market risk of interest rate changes resulting from variable rate borrowings under its senior secured credit facilities. The effect of a hypothetical one percentage point
increase in interest rates would increase the annual interest costs under the senior secured credit facilities by approximately $2.9 million based on the amount of outstanding borrowings at March 27, 2004. The weighted average interest rate on the
$294.3 million of borrowings under the senior secured credit facilities on March 27, 2004 was 4.1%.



Because the interest rates on borrowings under the senior secured credit facilities vary with market conditions, the amount of outstanding borrowings under the senior secured credit facilities approximates the fair
value of the indebtedness. The fair value of the $400 million aggregate principal amount of the Companys 83/8% Senior Subordinated Notes is exposed to the market risk of interest rate changes. The estimated fair value of such notes approximated $422 million at March 27, 2004 based upon quoted market rates.



ITEM 4



CONTROLS AND PROCEDURES



Holdings and TransDigm maintain disclosure controls and procedures that are designed to
ensure that information required to be disclosed in Holdings and TransDigms Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SECs rules and forms, and that such
information is accumulated and communicated to Holdings and TransDigms management, including their Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. In designing
and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and
management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.



As of the end of the period covered by this report, Holdings and TransDigm carried out an evaluation, under the supervision and with the participation of Holdings
and TransDigms management, including Holdings and TransDigms Chief Executive Officer and Holdings and TransDigms Chief Financial Officer, of the effectiveness of the design and operation of Holdings and
TransDigms disclosure controls and procedures. Based on the foregoing, Holdings and TransDigms Chief Executive Officer and Chief Financial Officer concluded that Holdings and TransDigms disclosure controls and
procedures were effective.



There have been no significant changes in
Holdings or TransDigms internal controls or in other factors that could significantly affect the internal controls subsequent to the date Holdings and TransDigm completed their evaluations.



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PART II: OTHER INFORMATION



ITEM 6 Exhibits and Reports on Form 8-K



(a) Exhibits



|10.1 | Amended and Restated Credit Agreement dated as of April 1, 2004, among TransDigm Inc., TransDigm Holding Company, various lenders named therein, and Credit Suisse First Boston, as
Administrative Agent and Collateral Agent, Credit Suisse First Boston and Banc of America Securities LLC, as Joint Bookrunners and Joint Lead Arrangers, Bank of America, N.A., as Syndication Agent, and UBS Securities LLC and General Electric Capital
Corporation as Documentation Agents.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|31.1 | Certification by Principal Executive Officer of TransDigm Holding Company pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|31.2 | Certification by Principal Financial Officer of TransDigm Holding Company pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|31.3 | Certification by Principal Executive Officer of TransDigm Inc. pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of
the Sarbanes-Oxley Act of 2002.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|31.4 | Certification by Principal Financial Officer of TransDigm Inc. pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of
the Sarbanes-Oxley Act of 2002.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|32.1 | Certification by Chief Executive Officer of TransDigm Holding Company pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|32.2 | Certification by Chief Financial Officer of TransDigm Holding Company pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|32.3 | Certification by Chief Executive Officer of TransDigm Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------



|32.4 | Certification by Chief Financial Officer of TransDigm Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------



(b) Reports on Form 8-K



On January 14, 2004, the Company filed a report on Form 8-K announcing its
regular scheduled quarterly conference call.



On January 20,
2004, the Company filed a report on Form 8-K announcing additional information on fiscal year 2003 and fiscal year 2004.



On February 19, 2004, the Company filed a report on Form 8-K announcing its regular scheduled quarterly conference call.



On March 5, 2004, the Company filed a report on Form 8-K announcing its
decision to engage Ernst & Young as the Companys independent accountant for the year ending September 30, 2004.



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SIGNATURES



TRANSDIGM HOLDING COMPANY



Pursuant to the requirements of the Securities Exchange Act of 1934, the co-registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto duly assigned.



|                                            |  |                                                                                 |  |            
|------------------------------------------- |  | ------------------------------------------------------------------------------- |  | -----------
|SIGNATURE                                   |  | TITLE                                                                           |  | DATE       
|                                            |  |                                                                                
|/s/    W. Nicholas HowleyW. Nicholas Howley |  | President and Chief Executive Officer(Principal Executive Officer) and Director |  | May 5, 2004
|                                            |  |                                                                                
|/s/    Gregory RufusGregory Rufus           |  | Chief Financial Officer(Principal Financial and Accounting Officer)             |  | May 5, 2004



TRANSDIGM INC.



Pursuant to the requirements of the Securities Exchange Act of 1934, the co-registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto duly assigned.



|                                            |  |                                                                                 |  |            
|------------------------------------------- |  | ------------------------------------------------------------------------------- |  | -----------
|SIGNATURE                                   |  | TITLE                                                                           |  | DATE       
|                                            |  |                                                                                
|/s/    W. Nicholas HowleyW. Nicholas Howley |  | President and Chief Executive Officer(Principal Executive Officer) and Director |  | May 5, 2004
|                                            |  |                                                                                
|/s/    Gregory RufusGregory Rufus           |  | Chief Financial Officer(Principal Financial and Accounting Officer)             |  | May 5, 2004



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EXHIBIT INDEX

TO FORM 10-Q FOR THE PERIOD ENDED MARCH 27, 2004



|            |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|----------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|EXHIBIT NO. |  | DESCRIPTION                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|10.1        |  | Amended and Restated Credit Agreement dated as of April 1, 2004, among TransDigm Inc., TransDigm Holding Company, various lenders named therein, and Credit Suisse First Boston, as
Administrative Agent and Collateral Agent, Credit Suisse First Boston and Banc of America Securities LLC, as Joint Bookrunners and Joint Lead Arrangers, Bank of America, N.A., as Syndication Agent, and UBS Securities LLC and General Electric Capital
Corporation as Documentation Agents.
|            | 
|31.1        |  | Certification by Principal Executive Officer of TransDigm Holding Company pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of
the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                   
|            | 
|31.2        |  | Certification by Principal Financial Officer of TransDigm Holding Company pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of
the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                   
|            | 
|31.3        |  | Certification by Principal Executive Officer of TransDigm Inc. pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                              
|            | 
|31.4        |  | Certification by Principal Financial Officer of TransDigm Inc. pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                              
|            | 
|32.1        |  | Certification by Chief Executive Officer of TransDigm Holding Company pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.                                                                                                                                                                                                                                                                                                   
|            | 
|32.2        |  | Certification by Chief Financial Officer of TransDigm Holding Company pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.                                                                                                                                                                                                                                                                                                   
|            | 
|32.3        |  | Certification by Chief Executive Officer of TransDigm Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                              
|            | 
|32.4        |  | Certification by Chief Financial Officer of TransDigm Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                              



32