##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-K
  þ
    
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
 For the fiscal year ended March 31, 2007
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to
 Commission File Number: 0-18706
 Black Box Corporation
  Delaware
(State or other jurisdiction of incorporation or organization)
    
    95-3086563
(I.R.S. Employer Identification No.)1000 Park Drive, Lawrence, Pennsylvania
    
    15055(Address of principal executive offices)
    
    (Zip Code)
 724-746-5500
 None
 Common Stock, $.001 par value
 o þ
 o þ
 o þ
 þ
  þ o o
 o þ
   DOCUMENTS INCORPORATED BY REFERENCE




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##### 



BLACK BOX CORPORATION
FOR THE FISCAL YEAR ENDED MARCH 31, 2007
INDEX
 PageEXPLANATORY NOTE
    
    3PART IItem 1.
    
    Business
    
    12Item 1A.
    
    Risk Factors
    
    15Item 1B.
    
    Unresolved Staff Comments
    
    17Item 2.
    
    Properties
    
    17Item 3.
    
    Legal Proceedings
    
    18Item 4.
    
    Submission of Matters to a Vote of Security Holders
    
    18PART IIItem 5.
    
    Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
    
    20Item 6.
    
    Selected Financial Data
    
    22Item 7.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    26Item 7A.
    
    Quantitative and Qualitative Disclosures about Market Risk
    
    45Item 8.
    
    Financial Statements and Supplementary Data
    
    47Item 9.
    
    Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
    
    101Item 9A.
    
    Controls and Procedures
    
    101Item 9B.
    
    Other Information
    
    104PART IIIItem 10.
    
    Directors and Executive Officers of the Registrant
    
    105Item 11.
    
    Executive Compensation
    
    105Item 12.
    
    Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
    
    105Item 13.
    
    Certain Relationships and Related Transactions
    
    105Item 14.
    
    Principal Accounting Fees and Services
    
    105PART IVItem 15.
    
    Exhibits and Financial Statement Schedules
    
    106Signatures
    
    109EX-10.9EX-10.24EX-23.1EX-31.1EX-31.2EX-32.1EX-99.1




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EXPLANATORY NOTE
    Restatement through March 31, 2006
 Background
      3




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Findings of the Audit Committee
   i.e.
 
    
    $4.2 million for the period from Fiscal 1993 through Fiscal 1997 ($0.2 million for
directors, $2.5 million for officers and $1.5 million for rank and file employees)
    
    $45.6 million for the period from Fiscal 1998 through August 2002 ($1.1 million for
directors, $25.7 million for officers and $18.7 million for rank and file employees)
    
    $21.8 million for the period from August 2002 to the present ($0.04 million for directors,
$0.6 million for officers and $21.1 million for rank and file employees)
  Lack of Adequate Documentation :
 Grant Approvals :
 4




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Option Pricing :
  Internal Controls :
 Procedural and Remedial Actions
    5




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Restatement Methodologies
   Grants with Appropriate Committee Approval
 Grants with Other Approvals
 6




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Grants Lacking Adequate Documentation
   7




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i.e.
  Other adjustments through March 31, 2006
  Summary
  8




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##### Table of Contents



1Q07 and 2Q07 Restatement
 Stock-based compensation expense
  Accounting for derivatives
 Accounting for Derivative Instruments and Hedging
Activities
   9




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##### Table of Contents



(As
    
    
    
    
    
    
    
    
    
    
    Adjust-
    
    
    
    
    
    
    (As
    
    
    
    
    
    
    (AsPreviously
    
    
    Adjust-
    
    
    Income
    
    
    ment,
    
    
    (As
    
    
    Previously
    
    
    
    
    
    
    Restated)Reported)
    
    
    ment,
    
    
    Tax
    
    
    Net of
    
    
    Restated)
    
    
    Reported)
    
    
    Adjust-
    
    
    DilutedNet Income
    
    
    Pre-Tax
    
    
    Benefit
    
    
    Tax
    
    
    Net Income
    
    
    Diluted EPS
    
    
    ment
    
    
    EPSFY 94
    
    $
    13,370
    
    
    $
    43
    
    
    $
    (19)
    
    
    $
    24
    
    
    $
    13,346
    
    
    $
    0.83
    
    
    $
    --
    
    
    $
    0.83FY 95
    
    
    14,515
    
    
    
    461
    
    
    
    (144)
    
    
    
    317
    
    
    
    14,198
    
    
    
    0.89
    
    
    
    (0.02)
    
    
    
    0.87FY 96
    
    
    18,278
    
    
    
    406
    
    
    
    (151)
    
    
    
    255
    
    
    
    18,023
    
    
    
    1.10
    
    
    
    (0.01)
    
    
    
    1.09FY 97
    
    
    24,792
    
    
    
    1,172
    
    
    
    (456)
    
    
    
    716
    
    
    
    24,076
    
    
    
    1.40
    
    
    
    (0.04)
    
    
    
    1.36FY 98
    
    
    32,404
    
    
    
    3,595
    
    
    
    (1,393)
    
    
    
    2,202
    
    
    
    30,202
    
    
    
    1.79
    
    
    
    (0.12)
    
    
    
    1.67FY 99
    
    
    38,145
    
    
    
    4,506
    
    
    
    (1,732)
    
    
    
    2,774
    
    
    
    35,371
    
    
    
    2.09
    
    
    
    (0.15)
    
    
    
    1.94FY 00
    
    
    48,852
    
    
    
    5,778
    
    
    
    (2,209)
    
    
    
    3,569
    
    
    
    45,283
    
    
    
    2.60
    
    
    
    (0.19)
    
    
    
    2.41FY 01
    
    
    64,190
    
    
    
    10,290
    
    
    
    (3,953)
    
    
    
    6,337
    
    
    
    57,853
    
    
    
    3.22
    
    
    
    (0.32)
    
    
    
    2.90FY 02
    
    
    62,042
    
    
    
    11,333
    
    
    
    (4,381)
    
    
    
    6,952
    
    
    
    55,090
    
    
    
    2.97
    
    
    
    (0.33)
    
    
    
    2.64FY 03
    
    
    48,685
    
    
    
    8,927
    
    
    
    (2,328)
    
    
    
    6,599
    
    
    
    42,086
    
    
    
    2.39
    
    
    
    (0.32)
    
    
    
    2.07Cumulative  03/31/03
    
    $
    365,273
    
    
    $
    46,511
    
    
   $
    (16,766)
    
    
    $
    29,745
    
    
    $
    335,528
    
    
    $
    19.29
    
    
    $
    (1.52)
    
    
    $
    17.77FY 04
    
    
    47,243
    
    
    
    8,197
    
    
    
    (4,156)
    
    
    
    4,041
    
    
    
    43,202
    
    
    
    2.52
    
    
    
    (0.22)
    
    
    
    2.30Cumulative  03/31/04
    
    $
    412,516
    
    
    $
    54,708
    
    
$
    (20,922)
    
    
    $
    33,786
    
    
    $
    378,730
    
    
    $
    21.80
    
    
$
    (1.73)
    
    
    $
    20.07FY 05
    
    
    29,912
    
    
    
    5,178
    
    
    
    (2,312)
    
    
    
    2,866
    
    
    
    27,046
    
    
    
    1.68
    
    
    
    (0.16)
    
    
    
    1.52Cumulative  03/31/05
    
    $
    442,428
    
    
    $
    59,886
    
    
   $
    (23,234)
    
    
    $
    36,652
    
    
    $
    405,776
    
    
    $
    23.48
    
    
$
    (1.89)
    
    
    $
    21.591Q06
    
    
    7,394
    
    
    
    1,120
    
    
    
    (442)
    
    
    
    678
    
    
    
    6,716
    
    
    
    0.43
    
    
    
    (0.04)
    
    
    
    0.392Q06
    
    
    12,797
    
    
    
    1,126
    
    
    
    (444)
    
    
    
    682
    
    
    
    12,115
    
    
    
    0.74
    
    
    
    (0.04)
    
    
    
    0.703Q06
    
    
    12,511
    
    
    
    2,431
    
    
    
    (959)
    
    
    
    1,472
    
    
    
    11,039
    
    
    
    0.70
    
    
    
    (0.08)
    
    
    
    0.624Q06
    
    
    4,656
    
    
    
    6,368
    
    
    
    (2,612)
    
    
    
    3,756
    
    
    
    900
    
    
    
    0.26
    
    
    
    (0.21)
    
    
    
    0.05FY 06
    
    $
    37,358
    
    
    $
    11,045
    
    
    $
    (4,457)
    
    
    $
    6,588
    
    
    $
    30,770
    
    
    $
    2.13
    
    
    $
    (0.37)
    
    
    $
    1.76Cumulative  03/31/06
    
    $
    479,786
    
    
    $
    70,931
    
    
$
    (27,691)
    
    
    $
    43,240
    
    
    $
    436,546
    
    
    $
    25.61
    
    
$
    (2.26)
    
    
    $
    23.351Q07
    
    
    7,807
    
    
    
    1,629
    
    
    
    (635)
    
    
    
    994
    
    
    
    6,813
    
    
    
    0.43
    
    
    
    (0.06)
    
    
    
    0.372Q07
    
    
    13,079
    
    
    
    2,210
    
    
    
    (806)
    
    
    
    1,404
    
    
    
    11,675
    
    
    
    0.74
    
    
    
    (0.08)
    
    
    
    0.662QYTD07
    
    $
    20,886
    
    
    $
    3,839
    
    
    $
    (1,441)
    
    
    $
    2,398
    
    
    $
    18,488
    
    
    $
    1.18
    
    
    $
    (0.14)
    
    
    $
    1.04Cumulative  09/30/06
    
    $
    500,672
    
    
    $
    74,770
    
    
$
    (29,132)
    
    
    $
    45,638
    
    
    $
    455,034
    
    
    $
    26.78
    
    
$
    (2.39)
    
    
    $
    24.39
 Income Tax Considerations
   10




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Expenses Incurred by the Company
  11




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##### Table of Contents



PART I
 
 Item 1. Business.
 Overview.
 ®
  Industry Background.
  Business Strategy.
 Expert Technical Support Deployed Three Ways.
 Locally
at Client Sites. ® ® ® ® ® ® ® ®
 24/7/365
Technical Support.
 www.blackbox.com
Internet Web Site.
 Worldwide Coverage.
 12




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Strategic Partnerships with Leading Voice and Data Product Manufacturers.
 Quality Networking Solutions and Comprehensive Warranties. ®
 Brand Name.
 ISO 9001:2000 Certified.
 Proprietary Client List.
 Rapid Order Fulfillment.
 Growth Strategy.
 Mergers and Acquisitions.
 Fiscal
2007
      13




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Fiscal 2006
  Fiscal 2005
   Percent of Consolidated RevenuesService Type
    
    FY07
    
    FY06
    
    FY05Voice Services
    
    
    60%
    
    
    
    43%
    
    
    
    20%Hotline Services
    
    
    22%
    
    
    
    30%
    
    
    
    42%Data Services
    
    
    18%
    
    
    
    27%
    
    
    
    38%Black Box Total
    
    
    100%
    
    
    
    100%
    
    
    
    100%
 Clients.
 Marketing.
 Technical Services.
 Worldwide Headquarters.
 Products. .
 Manufacturers and Suppliers.
  14




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##### Table of Contents



Information Systems.
  Backlog. i.e
 Team
Members.
 Financial Information.
 International Revenues.
 Other Information.
 
 Item 1A. Risk Factors.
  Stock option matters See
  In re Black Box Corporation Derivative Litigation
 15




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Competition
 Economic environments
 Successful integration of acquired businesses
 International operations
 16




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##### Table of Contents



Retention
of key personnel
 Demand for products and services
 Supply
chain and distribution agreements
 Future mergers and acquisitions
 Public sector business
 Revenue growth
 Liquidity
 Stock price
 
 Item 1B. Unresolved Staff Comments.
  
 Item 2. Properties.
    17




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##### Table of Contents



Item 3. Legal Proceedings.
 Regulatory Matters
  See
   Litigation Matters
 In re Black Box Corporation Derivative
Litigation
   
 Item 4. Submission of Matters to a Vote of Security Holders .
  18




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Executive Officers of the Registrant
  Name
    
    Age
    
    Position with the CompanyTerry Blakemore
    
    
    50
    
    
    Interim President and Chief Executive OfficerMichael McAndrew
    
    
    47
    
    
    Vice President, Chief Financial Officer,
Treasurer, Secretary and Principal

Accounting OfficerFrancis W. Wertheimber
    
    
    54
    
    
    Senior Vice President  Pacific Rim/Far East
   TERRY BLAKEMORE
 MICHAEL MCANDREW
 FRANCIS W. WERTHEIMBER
 Directors of the Registrant
  WILLIAM F. ANDREWS
 RICHARD L. CROUCH
 THOMAS W. GOLONSKI
 THOMAS G. GREIG
 EDWARD A. NICHOLSON, PH.D.
 19




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##### Table of Contents



PART II
 
 Item 5. M arket for R egistrants C ommon E quity ,
R elated S tockholder M atters and I ssuer P urchases of E quity S ecurities.
 Common Stock Information:
   High
    
    
    LowFiscal 20071st Quarter
    $
    
    54.09
    
    $
    
    35.692nd Quarter
    
    
    43.32
    
    
    
    36.513rd Quarter
    
    
    46.60
    
    
    
    38.014th Quarter
    
    
    42.65
    
    
    
    34.64Fiscal 20061st Quarter
    $
    
    37.93
    
    $
    
    31.832nd Quarter
    
    
    45.94
    
    
    
    34.933rd Quarter
    
    
    50.45
    
    
    
    37.824th Quarter
    
    
    55.37
    
    
    
    45.12
  Dividend Policy:
  Stockholders:
  Equity Plan Compensation Information:
  Issuance of Unregistered Securities:
  Issuer Purchases of Equity Securities:
 Total Number of
    
    
    Maximum NumberShares Purchased
    
    
    of Shares that Mayas Part of Publicly
    
    
    Yet Be PurchasedTotal Number of
    
    
    Average Price
    
    
    Announced Plans
    
    
    Under the PlansPeriod
    
    Shares Purchased
    
    
    Paid per Share
    
    
    or Programs
    
    
    or ProgramsDecember 31, 2006

to January 28, 2007
    
    
    --
    
    
    $
    --
    
    
    
    --
    
    
    
    1,063,945January 29, 2007

to February 25, 2007
    
    
    56
    
    
    
    41.02
    
    
    
    56
    
    
    
    1,063,889February 26, 2007
to March 31, 2007
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    1,063,889Total
    
    
    56
    
    
    $
    41.02
    
    
    
    56
    
    
    
    1,063,889
 20




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Performance Graph:
  
 3/31/02
    
    
    3/31/03
    
    
    3/31/04
    
    
    3/31/05
    
    
    3/31/06
    
    
    3/31/07Black Box
Corporation
    
    $
    100.00
    
    
    $
    61.36
    
    
    $
    111.18
    
    
    $
    78.27
    
    
    $
    101.10
    
    
    $
    77.36S&P Small Cap 600
    
    
    100.00
    
    
    
    75.19
    
    
    
    117.66
    
    
    
    133.05
    
    
    
    165.07
    
    
    
    173.81NASDAQ Composite
    
    
    100.00
    
    
    
    71.63
    
    
    
    109.32
    
    
    
    109.98
    
    
    
    131.49
    
    
    
    138.22Russell 2000
    
    
    100.00
    
    
    
    73.04
    
    
    
    119.66
    
    
    
    126.13
    
    
    
    158.73
    
    
    
    168.11Peer Group
    
    
    100.00
    
    
    
    70.54
    
    
    
    105.80
    
    
    
    88.92
    
    
    
    93.67
    
    
    
    106.65
 21




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##### Table of Contents



Item 6. Selected Financial Data.
  Fiscal Year Ended March 31,(As Restated)
    
    
    (As Restated)
    
    
    (As Restated)
    
    
    (As Restated)2007
    
    
    2006
    
    
    2005
    
    
    2004
    
    
    2003Statements of IncomeRevenuesHotline products
    
    $
    222,903
    
    
    $
    213,946
    
    
    $
    227,601
    
    
    $
    237,872
    
    
    $
    252,105On-Site services
    
    
    793,407
    
    
    
    507,389
    
    
    
    307,475
    
    
    
    282,540
    
    
    
    352,912Total
    
    
    1,016,310
    
    
    
    721,335
    
    
    
    535,076
    
    
    
    520,412
    
    
    
    605,017Cost of salesHotline products
    
    
    113,780
    
    
    
    108,220
    
    
    
    108,281
    
    
    
    112,949
    
    
    
    123,470On-Site services
    
    
    528,541
    
    
    
    330,765
    
    
    
    211,866
    
    
    
    191,212
    
    
    
    242,700Total
    
    
    642,321
    
    
    
    438,985
    
    
    
    320,147
    
    
    
    304,161
    
    
    
    366,170Gross profit
    
    
    373,989
    
    
    
    282,350
    
    
    
    214,929
    
    
    
    216,251
    
    
    
    238,847Selling, general &
administrative expenses
    
    
    290,355
    
    
    
    216,911
    
    
    
    165,180
    
    
    
    149,002
    
    
    
    161,735Restructuring and other charges
    
    
    --
    
    
    
    5,290
    
    
    
    5,059
    
    
    
    --
    
    
    
    6,536Intangibles amortization
    
    
    10,285
    
    
    
    4,999
    
    
    
    1,332
    
    
    
    246
    
    
    
    377Operating income
    
    
    73,349
    
    
    
    55,150
    
    
    
    43,358
    
    
    
    67,003
    
    
    
    70,199Interest expense (income), net
    
    
    18,407
    
    
    
    9,123
    
    
    
    2,755
    
    
    
    1,808
    
    
    
    2,826Other expenses (income), net
    
    
    42
    
    
    
    36
    
    
    
    115
    
    
    
    147
    
    
    
    229Income before provision for
income taxes
    
    
    54,900
    
    
    
    45,991
    
    
    
    40,488
    
    
    
    65,048
    
    
    
    67,144Provision for income taxes
    
    
    19,291
    
    
    
    15,221
    
    
    
    13,442
    
    
    
    21,846
    
    
    
    25,058Net income
    
    $
    35,609
    
    
    $
    30,770
    
    
    $
    27,046
    
    
    $
    43,202
    
    
    $
    42,086Basic earnings per share
    
    $
    2.03
    
    
    $
    1.79
    
    
    $
    1.55
    
    
    $
    2.38
    
    
    $
    2.13Diluted earnings per share
    
    $
    2.00
    
    
    $
    1.75
    
    
    $
    1.52
    
    
    $
    2.30
    
    
    $
    2.07Dividends declared per
common share
    
    $
    0.24
    
    
    $
    0.24
    
    
    $
    0.22
    
    
    $
    0.20
    
    
    $
    0.10Balance Sheet Data (at end of
period):Working capital (1)
    
    $
    117,059
    
    
    $
    99,669
    
    
    $
    108,948
    
    
    $
    108,116
    
    
    $
    118,592Total assets
    
    
    1,090,091
    
    
    
    815,412
    
    
    
    787,064
    
    
    
    631,010
    
    
    
    639,233Long-term debt
    
    
    239,928
    
    
    
    122,673
    
    
    
    147,196
    
    
    
    35,177
    
    
    
    49,453Total debt
    
    
    240,614
    
    
    
    123,722
    
    
    
    147,888
    
    
    
    36,238
    
    
    
    50,379Stockholders equity
    
    
    599,696
    
    
    
    552,991
    
    
    
    501,288
    
    
    
    517,297
    
    
    
    506,926
 (1)

    Working capital is computed as current assets minus current
liabilities. 22




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See
 Fiscal Year Ended March 31, 2005As PreviouslyReported
    
    
    Adjustment
    
    
    As RestatedStatements of IncomeRevenuesHotline products
    
    $
    227,601
    
    
    $
    --
    
    
    $
    227,601On-Site services
    
    
    307,475
    
    
    
    --
    
    
    
    307,475Total
    
    
    535,076
    
    
    
    --
    
    
    
    535,076Cost of salesHotline products
    
    
    108,281
    
    
    
    --
    
    
    
    108,281On-Site services
    
    
    211,866
    
    
    
    --
    
    
    
    211,866Total
    
    
    320,147
    
    
    
    --
    
    
    
    320,147Gross profit
    
    
    214,929
    
    
    
    --
    
    
    
    214,929Selling, general & administrative expenses
    
    
    160,002
    
    
    
    5,178
    
    
    
    165,180Restructuring and other charges
    
    
    5,059
    
    
    
    --
    
    
    
    5,059Intangibles amortization
    
    
    1,332
    
    
    
    --
    
    
    
    1,332Operating income
    
    
    48,536
    
    
    
    (5,178
    )
    
    
    43,358Interest expense (income), net
    
    
    2,755
    
    
    
    --
    
    
    
    2,755Other expenses (income), net
    
    
    115
    
    
    
    --
    
    
    
    115Income before provision for income taxes
    
    
    45,666
    
    
    
    (5,178)
    
    
    
    40,488Provision for income taxes
    
    
    15,754
    
    
    
    (2,312)
    
    
    
    13,442Net income
    
    $
    29,912
    
    
    $
    (2,866
    )
    
    $
    27,046Basic earnings per share
    
    $
    1.72
    
    
    $
    (0.17)
    
    
    $
    1.55Diluted earnings per share
    
    $
    1.68
    
    
    $
    (0.16)
    
    
    $
    1.52Dividends declared per common share
    
    $
    0.22
    
    
    $
    --
    
    
    $
    0.22Balance Sheet Data (at end of period):Working capital (1)
    
    $
    112,535
    
    
    $
    (3,587)
    
    
    $
    108,948Total assets
    
    
    772,890
    
    
    
    14,174
    
    
    
    787,064Long-term debt
    
    
    147,196
    
    
    
    --
    
    
    
    147,196Total debt
    
    
    147,888
    
    
    
    --
    
    
    
    147,888Stockholders equity (2)
    
    
    490,701
    
    
    
    10,587
    
    
    
    501,288
 (1)
    
    Working capital is computed as current assets minus current
liabilities.(2)
    
    The Adjustment to Stockholders equity for Fiscal 2005 includes a cumulative
adjustment from Fiscal 1994 through Fiscal 2005 for stock-based compensation expense, of which
$36,652 and $47,239 was recorded to decrease Retained earnings and increase additional paid-in
capital, respectively. 23




---



##### Table of Contents



Fiscal Year Ended March 31, 2004As PreviouslyReported
    
    
    Adjustment
    
    
    As RestatedStatements of IncomeRevenuesHotline products
    
    $
    237,872
    
    
    $
    --
    
    
    $
    237,872On-Site services
    
    
    282,540
    
    
    
    --
    
    
    
    282,540Total
    
    
    520,412
    
    
    
    --
    
    
    
    520,412Cost of salesHotline products
    
    
    112,949
    
    
    
    --
    
    
    
    112,949On-Site services
    
    
    191,212
    
    
    
    --
    
    
    
    191,212Total
    
    
    304,161
    
    
    
    --
    
    
    
    304,161Gross profit
    
    
    216,251
    
    
    
    --
    
    
    
    216,251Selling, general & administrative expenses
    
    
    140,805
    
    
    
    8,197
    
    
    
    149,002Restructuring and other charges
    
    
    --
    
    
    
    --
    
    
    
    --Intangibles amortization
    
    
    246
    
    
    
    --
    
    
    
    246Operating income
    
    
    75,200
    
    
    
    (8,197
    )
    
    
    67,003Interest expense (income), net
    
    
    1,808
    
    
    
    --
    
    
    
    1,808Other expenses (income), net
    
    
    147
    
    
    
    --
    
    
    
    147Income before provision for income taxes
    
    
    73,245
    
    
    
    (8,197)
    
    
    
    65,048Provision for income taxes
    
    
    26,002
    
    
    
    (4,156)
    
    
    
    21,846Net income
    
    $
    47,243
    
    
    $
    (4,041
    )
    
    $
    43,202Basic earnings per share
    
    $
    2.60
    
    
    $
    (0.22)
    
    
    $
    2.38Diluted earnings per share
    
    $
    2.52
    
    
    $
    (0.22)
    
    
    $
    2.30Dividends declared per common share
    
    $
    0.20
    
    
    $
    --
    
    
    $
    0.20Balance Sheet Data (at end of period):Working capital (1)
    
    $
    109,431
    
    
    $
    (1,315)
    
    
    $
    108,116Total assets
    
    
    617,302
    
    
    
    13,708
    
    
    
    631,010Long-term debt
    
    
    35,177
    
    
    
    --
    
    
    
    35,177Total debt
    
    
    36,238
    
    
    
    --
    
    
    
    36,238Stockholders equity (2)
    
    
    504,904
    
    
    
    12,393
    
    
    
    517,297
 (1)
    
    Working capital is computed as current assets minus current
liabilities.(2)
    
    The Adjustment to Stockholders equity for Fiscal 2004 includes a cumulative
adjustment from Fiscal 1994 through Fiscal 2004 for stock-based compensation expense, of which
$33,786 and $46,179 was recorded to decrease Retained earnings and increase Additional paid-in
capital, respectively. 24




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##### Table of Contents



Fiscal Year Ended March 31, 2003As PreviouslyReported
    
    
    Adjustment
    
    
    As RestatedStatements of IncomeRevenuesHotline products
    
    $
    252,105
    
    
    $
    --
    
    
    $
    252,105On-Site services
    
    
    352,912
    
    
    
    --
    
    
    
    352,912Total
    
    
    605,017
    
    
    
    --
    
    
    
    605,017Cost of salesHotline products
    
    
    123,470
    
    
    
    --
    
    
    
    123,470On-Site services
    
    
    242,700
    
    
    
    --
    
    
    
    242,700Total
    
    
    366,170
    
    
    
    --
    
    
    
    366,170Gross profit
    
    
    238,847
    
    
    
    --
    
    
    
    238,847Selling, general & administrative expenses
    
    
    152,808
    
    
    
    8,927
    
    
    
    161,735Restructuring and other charges
    
    
    6,536
    
    
    
    --
    
    
    
    6,536Intangibles amortization
    
    
    377
    
    
    
    --
    
    
    
    377Operating income
    
    
    79,126
    
    
    
    (8,927
    )
    
    
    70,199Interest expense (income), net
    
    
    2,826
    
    
    
    --
    
    
    
    2,826Other expenses (income), net
    
    
    229
    
    
    
    --
    
    
    
    229Income before provision for income taxes
    
    
    76,071
    
    
    
    (8,927)
    
    
    
    67,144Provision for income taxes
    
    
    27,386
    
    
    
    (2,328)
    
    
    
    25,058Net income
    
    $
    48,685
    
    
    $
    (6,599
    )
    
    $
    42,086Basic earnings per share
    
    $
    2.46
    
    
    $
    (0.33)
    
    
    $
    2.13Diluted earnings per share
    
    $
    2.39
    
    
    $
    (0.32)
    
    
    $
    2.07Dividends declared per common share
    
    $
    0.10
    
    
    $
    --
    
    
    $
    0.10Balance Sheet Data (at end of period):Working capital (1)
    
    $
    118,592
    
    
    $
    --
    
    
    $
    118,592Total assets
    
    
    626,729
    
    
    
    12,504
    
    
    
    639,233Long-term debt
    
    
    49,453
    
    
    
    --
    
    
    
    49,453Total debt
    
    
    50,379
    
    
    
    --
    
    
    
    50,379Stockholders equity (2)
    
    
    494,422
    
    
    
    12,504
    
    
    
    506,926
 (1)
    
    Working capital is computed as current assets minus current
liabilities.(2)
    
    The Adjustment to Stockholders equity for the Fiscal 2003 includes a
cumulative adjustment from Fiscal 1994 through Fiscal 2003 for stock-based compensation expense, of
which $29,745 and $42,249 was recorded to decrease Retained earnings and increase Additional
paid-in capital, respectively. 25




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##### Table of Contents



Item 7. Managements Discussion and Analysis of Financial Condition and Results of
Operations.
 The discussion and analysis set forth below in this Item 7 for the fiscal year ended March 31,
2006 and 2005 has been amended to reflect the Restatement as described in the Explanatory Note and
in Note 3 of the Notes to the Consolidated Financial Statements. For this reason, the data set
forth in this section may not be comparable to discussions and data in the Companys
previously-filed Annual Reports on Form 10-K . All dollar amounts are presented in thousands unless
otherwise noted.
 Restatement through March 31, 2006
 Background
      Findings of the Audit Committee
   26




---



##### Table of Contents



i.e.
 
    
    $4.2 million for the period from Fiscal 1993 through Fiscal 1997 ($0.2 million for
directors, $2.5 million for officers and $1.5 million for rank and file employees)
    
    $45.6 million for the period from Fiscal 1998 through August 2002 ($1.1 million for
directors, $25.7 million for officers and $18.7 million for rank and file employees)
    
    $21.8 million for the period from August 2002 to the present ($0.04 million for directors,
$0.6 million for officers and $21.1 million for rank and file employees)
  Lack of Adequate Documentation :
 Grant Approvals :
  Option Pricing :
 27




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##### Table of Contents



Internal Controls :
 Procedural and Remedial Actions
       28




---



##### Table of Contents



Restatement Methodologies
   Grants with Appropriate Committee Approval
 Grants with Other Approvals
 Grants Lacking Adequate Documentation
  29




---



##### Table of Contents



i.e.
 30




---



##### Table of Contents



Other adjustments through March 31, 2006
  Summary
  1Q07 and 2Q07 Restatement
 Stock-based compensation expense
  Accounting for derivatives
   31




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##### Table of Contents



(As
    
    
    
    
    
    
    
    
    
    
    Adjust-
    
    
    
    
    
    
    (As
    
    
    
    
    
    
    (AsPreviously
    
    
    Adjust-
    
    
    Income
    
    
    ment,
    
    
    (As
    
    
    Previously
    
    
    
    
    
    
    Restated)Reported)
    
    
    ment,
    
    
    Tax
    
    
    Net of
    
    
    Restated)
    
    
    Reported)
    
    
    Adjust-
    
    
    DilutedNet Income
    
    
    Pre-Tax
    
    
    Benefit
    
    
    Tax
    
    
    Net Income
    
    
    Diluted EPS
    
    
    ment
    
    
    EPSFY 94
    
    $
    13,370
    
    
    $
    43
    
    
    $
    (19)
    
    
    $
    24
    
    
    $
    13,346
    
    
    $
    0.83
    
    
    $
    --
    
    
    $
    0.83FY 95
    
    
    14,515
    
    
    
    461
    
    
    
    (144)
    
    
    
    317
    
    
    
    14,198
    
    
    
    0.89
    
    
    
    (0.02)
    
    
    
    0.87FY 96
    
    
    18,278
    
    
    
    406
    
    
    
    (151)
    
    
    
    255
    
    
    
    18,023
    
    
    
    1.10
    
    
    
    (0.01)
    
    
    
    1.09FY 97
    
    
    24,792
    
    
    
    1,172
    
    
    
    (456)
    
    
    
    716
    
    
    
    24,076
    
    
    
    1.40
    
    
    
    (0.04)
    
    
    
    1.36FY 98
    
    
    32,404
    
    
    
    3,595
    
    
    
    (1,393)
    
    
    
    2,202
    
    
    
    30,202
    
    
    
    1.79
    
    
    
    (0.12)
    
    
    
    1.67FY 99
    
    
    38,145
    
    
    
    4,506
    
    
    
    (1,732)
    
    
    
    2,774
    
    
    
    35,371
    
    
    
    2.09
    
    
    
    (0.15)
    
    
    
    1.94FY 00
    
    
    48,852
    
    
    
    5,778
    
    
    
    (2,209)
    
    
    
    3,569
    
    
    
    45,283
    
    
    
    2.60
    
    
    
    (0.19)
    
    
    
    2.41FY 01
    
    
    64,190
    
    
    
    10,290
    
    
    
    (3,953)
    
    
    
    6,337
    
    
    
    57,853
    
    
    
    3.22
    
    
    
    (0.32)
    
    
    
    2.90FY 02
    
    
    62,042
    
    
    
    11,333
    
    
    
    (4,381)
    
    
    
    6,952
    
    
    
    55,090
    
    
    
    2.97
    
    
    
    (0.33)
    
    
    
    2.64FY 03
    
    
    48,685
    
    
    
    8,927
    
    
    
    (2,328)
    
    
    
    6,599
    
    
    
    42,086
    
    
    
    2.39
    
    
    
    (0.32)
    
    
    
    2.07Cumulative 03/31/03
    
    $
    365,273
    
    
    $
    46,511
    
    
    $
    (16,766)
    
    
    $
    29,745
    
    
    $
    335,528
    
    
    $
    19.29
    
    
    $
    (1.52)
    
    
    $
    17.77FY 04
    
    
    47,243
    
    
    
    8,197
    
    
    
    (4,156)
    
    
    
    4,041
    
    
    
    43,202
    
    
    
    2.52
    
    
    
    (0.22)
    
    
    
    2.30Cumulative 03/31/04
    
    $
    412,516
    
    
    $
    54,708
    
    
    $
    (20,922)
    
    
    $
    33,786
    
    
    $
    378,730
    
    
    $
    21.80
    
    
    $
    (1.73)
    
    
    $
    20.07FY 05
    
    
    29,912
    
    
    
    5,178
    
    
    
    (2,312)
    
    
    
    2,866
    
    
    
    27,046
    
    
    
    1.68
    
    
    
    (0.16)
    
    
    
    1.52Cumulative 03/31/05
    
    $
    442,428
    
    
    $
    59,886
    
    
    $
    (23,234)
    
    
    $
    36,652
    
    
    $
    405,776
    
    
    $
    23.48
    
    
    $
    (1.89)
    
    
    $
    21.591Q06
    
    
    7,394
    
    
    
    1,120
    
    
    
    (442)
    
    
    
    678
    
    
    
    6,716
    
    
    
    0.43
    
    
    
    (0.04)
    
    
    
    0.392Q06
    
    
    12,797
    
    
    
    1,126
    
    
    
    (444)
    
    
    
    682
    
    
    
    12,115
    
    
    
    0.74
    
    
    
    (0.04)
    
    
    
    0.703Q06
    
    
    12,511
    
    
    
    2,431
    
    
    
    (959)
    
    
    
    1,472
    
    
    
    11,039
    
    
    
    0.70
    
    
    
    (0.08)
    
    
    
    0.624Q06
    
    
    4,656
    
    
    
    6,368
    
    
    
    (2,612)
    
    
    
    3,756
    
    
    
    900
    
    
    
    0.26
    
    
    
    (0.21)
    
    
    
    0.05FY 06
    
    $
    37,358
    
    
    $
    11,045
    
    
    $
    (4,457)
    
    
    $
    6,588
    
    
    $
    30,770
    
    
    $
    2.13
    
    
    $
    (0.37)
    
    
    $
    1.76Cumulative 03/31/06
    
    $
    479,786
    
    
    $
    70,931
    
    
    $
    (27,691)
    
    
    $
    43,240
    
    
    $
    436,546
    
    
    $
    25.61
    
    
    $
    (2.26)
    
    
    $
    23.351Q07
    
    
    7,807
    
    
    
    1,629
    
    
    
    (635)
    
    
    
    994
    
    
    
    6,813
    
    
    
    0.43
    
    
    
    (0.06)
    
    
    
    0.372Q07
    
    
    13,079
    
    
    
    2,210
    
    
    
    (806)
    
    
    
    1,404
    
    
    
    11,675
    
    
    
    0.74
    
    
    
    (0.08)
    
    
    
    0.662QYTD07
    
    $
    20,886
    
    
    $
    3,839
    
    
    $
    (1,441)
    
    
    $
    2,398
    
    
    $
    18,488
    
    
    $
    1.18
    
    
    $
    (0.14)
    
    
    $
    1.04Cumulative 09/30/06
    
    $
    500,672
    
    
    $
    74,770
    
    
    $
    (29,132)
    
    
    $
    45,638
    
    
    $
    455,034
    
    
    $
    26.78
    
    
    $
    (2.39)
    
    
    $
    24.39
 32




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##### Table of Contents



Income Tax Considerations
   Expenses Incurred by the Company
  The Company
    33




---



##### Table of Contents



Years Ended March 31,2005
    
    
    2006
    
    
    2007
    
    
    2008
    
    
    2009
    
    
    ThereafterGross profitInventory
write-up on 

acquisitions
    
    $
    1,028
    
    
    $
    1,543
    
    
    $
    --
    
    
    $
    --
    
    
    $
    --
    
    
    $
    --Selling, general &
administrativeAsset write-up
depreciation

expense on
acquisitions
    
    
    913
    
    
    
    450
    
    
    
    2,646
    
    
    
    2,035
    
    
    
    1,844
    
    
    
    104AmortizationAmortization of
intangible
 assets
on
acquisitions
    
    
    759
    
    
    
    3,821
    
    
    
    10,075
    
    
    
    6,177
    
    
    
    5,106
    
    
    
    61,791Total
    
    $
    2,700
    
    
    $
    5,814
    
    
    $
    12,721
    
    
    $
    8,212
    
    
    $
    6,950
    
    
    $
    61,895
  1Q08
    
    
    2Q08
    
    
    3Q08
    
    
    4Q08
    
    
    FY08Selling, general &

administrativeAsset write-up
depreciation

expense on
acquisitions
    
    $
    659
    
    
    $
    496
    
    
    $
    440
    
    
    $
    440
    
    
    $
    2,035AmortizationAmortization of
intangible 
assets
on acquisitions
    
    
    2,277
    
    
    
    1,307
    
    
    
    1,307
    
    
    
    1,286
    
    
    
    6,177Total
    
    $
    2,936
    
    
    $
    1,803
    
    
    $
    1,747
    
    
    $
    1,726
    
    
    $
    8,212
   34




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##### Table of Contents



See
 Year Ended March 31,(As Restated)
    
    
    (As Restated)2007
    
    
    2006
    
    
    2005% of
    
    
    
    
    
    % of
    
    
    
    
    
    % oftotal
    
    
    
    
    
    total
    
    
    
    
    
    total$
    
    
    revenue
    
    $
    
    
    revenue
    
    $
    
    
    revenueRevenuesNorth America
    
    $
    850,088
    
    
    
    83.7%
    
    
    $
    564,700
    
    
    
    78.3%
    
    
    $
    355,013
    
    
    
    66.3%Europe
    
    
    129,278
    
    
    
    12.7%
    
    
    
    120,051
    
    
    
    16.6%
    

    
    
    142,838
    
    
    
    26.7%All Other
    
    
    36,944
    
    
    
    3.6%
    
    
    
    36,584
    
    
    
    5.1%
    
    
    
    37,225
    
    
    
    7.0%Total
    
    $
    1,016,310
    
    
    
    100%
    
    
    
    721,335
    
    
    
    100%
    
    
    $
    535,076
    
    
    
    100%Operating incomeNorth America
    
    $
    49,481
    
    
    
    
    
    
    $
    42,505
    
    
    
    
    
    
    $
    21,620% of North America revenues
    
    
    5.8%
    
    
    
    
    
    
    
    7.5%
    
    
    
    
    
    
    
    6.1%Europe
    
    $
    16,442
    
    
    
    
    
    
    $
    5,518
    
    
    
    
    
    
    $
    13,639% of Europe revenues
    
    
    12.7%
    
    
    
    
    
    
    
    4.6%
    
    
    
    
    
    
    
    9.5%All Other
    
    $
    7,426
    
    
    
    
    
    
    $
    7,127
    
    
    
    
    
    
    $
    8,099% of All Other revenues
    
    
    20.1%
    
    
    
    
    
    
    
    19.5%
    
    
    
    
    
    
    
    21.8%Total
    
    $
    73,349
    
    
    
    7.2%
    
    
    $
    55,150
    
    
    
    7.6%
    
    
    $
    43,358
    
    
    
    8.1%Reconciling itemsNorth America
    
    $
    24,785
    
    
    
    
    
    
    $
    18,407
    
    
    
    
    
    
    $
    16,334Europe
    
    
    --
    
    
    
    
    
    
    
    10,807
    
    
    
    
    
    
    
    1,003All Other
    
    
    --
    
    
    
    
    
    
    
    --
    
    
    
    
    
    
    
    --Total
    
    $
    24,785
    
    
    
    2.4%
    
    
    $
    29,214
    
    
    
    4.0%
    
    
    $
    17,337
    
    
    
    3.2%
 35




---



##### Table of Contents



Year Ended March 31,2007
    
    
    2006
    
    
    2005% of
    
    
    
    
    
    
    % of
    
    
    
    
    
    
    % oftotal
    
    
    
    
    
    
    total
    
    
    
    
    
    
    total$
    
    
    revenue
    
    
    $
    
    
    revenue
    
    
    $
    
    
    revenueRevenuesData Services
    
    $
    182,129
    
    
    
    17.9%
    
    
    $
    196,585
    
    
    
    27.2%
    
    
    $
    200,935
    
    
    
    37.6%Voice Services
    
    
    611,278
    
    
    
    60.2%
    
    
    
    310,804
    
    
    
    43.1%
    
    
    
    106,540
    
    
    
    19.9%Hotline Services
    
    
    222,903
    
    
    
    21.9%
    
    
    
    213,946
    
    
    
    29.7%
    
    
    
    227,601
    
    
    
    42.5%Total
    
    $
    1,016,310
    
    
    
    100%
    
    
    $
    721,335
    
    
    
    100%
    
    
    $
    535,076
    
    
    
    100%Gross profitData Services
    
    $
    55,598
    
    
    
    
    
    
    $
    57,068
    
    
    
    
    
    
    $
    59,354% of Data Services revenues
    
    
    30.5%
    
    
    
    
    
    
    
    29.0%
    
    
    
    
    
    
    
    29.5%Voice Services
    
    $
    209,268
    
    
    
    
    
    
    $
    119,556
    
    
    
    
    
    
    $
    36,255% of Voice Services revenues
    
    
    34.2%
    
    
    
    
    
    
    
    38.5%
    
    
    
    
    
    
    
    34.0%Hotline Services
    
    $
    109,123
    
    
    
    
    
    
    $
    105,726
    
    
    
    
    
    
    $
    119,320% of Hotline Services revenues
    
    
    49.0%
    
    
    
    
    
    
    
    49.4%
    
    
    
    
    
    
    
    52.4%Total
    
    $
    373,989
    
    
    
    36.8%
    
    
    $
    282,350
    
    
    
    39.1%
    
    
    $
    214,929
    
    
    
    40.2%Reconciling itemsData Services
    
    $
    --
    
    
    
    
    
    
    $
    2,071
    
    
    
    
    
    
    $
    --Voice Services
    
    
    --
    
    
    
    
    
    
    
    --
    
    
    
    
    
    
    
    --Hotline Services
    
    
    --
    
    
    
    
    
    
    
    1,517
    
    
    
    
    
    
    
    --Total
    
    $
    --
    
    
    
    
    
    
    $
    3,588
    
    
    
    0.5%
    
    
    
    --
  Fiscal 2007 Compared To Fiscal 2006
 Total Revenues
  Revenues by Geography
 North America
  Europe
  36




---



##### Table of Contents



All Other Revenues
  Revenue by Service Type
 Data Services
  Voice Services
  Hotline Services
  Gross Profit
   Selling, General & Administrative Expenses
  Restructuring and Other Charges
 See
 37




---



##### Table of Contents



Intangibles Amortization
 See
 Operating Income
  Interest Expense, Net
  Provision for Income Taxes
  Net Income
  Fiscal 2006 Compared To Fiscal 2005
 Total Revenues
  Revenues by Geography
 North America
  Europe
  38




---



##### Table of Contents



All Other
  Revenue by Service Type
 Data Services
  Voice Services
  Hotline Services
  Gross Profit
   Selling, General & Administrative Expenses
  Restructuring and Other Charges
 See
 See
 39




---



##### Table of Contents



Intangibles Amortization
 See
 Operating Income
  Interest Expense, Net
  Provision for Income Taxes
  Net Income
  Liquidity and Capital Resources
 Cash Flows from Operating Activities
     40




---



##### Table of Contents



Investing Activities
 See
 See
 See
 Financing Activities
    Total Debt
 Revolving Credit Agreement
   Dividends
 Fiscal 2007
 41




---



##### Table of Contents



Fiscal 2006
 Fiscal 2005
  Repurchase of Common Stock
 Fiscal 2007
 Fiscal 2006
 Fiscal 2005
  Contractual Obligations
   Payments Due by PeriodLess than 1
    
    
    
    
    
    
    
    
    
    
    More thanyear
    
    
    1-3 years
    
    
    3-5 years
    
    
    5 years
    
    
    TotalLong-term debt obligations
    
    $
    --
    
    
    $
    --
    
    
    $
    236,715
    
    
    $
    --
    
    
    $
    236,715Interest expense on long-term debt
    
    
    15,847
    
    
    
    31,695
    
    
    
    15,782
    
    
    
    --
    
    
    
    63,324Capital lease obligations
    
    
    686
    
    
    
    1,193
    
    
    
    286
    
    
    
    --
    
    
    
    2,165Operating lease obligations
    
    
    29,825
    
    
    
    35,436
    
    
    
    14,880
    
    
    
    3,561
    
    
    
    83,702Total contractual obligations
    
    $
    46,358
    
    
    $
    68,324
    
    
    $
    267,663
    
    
    $
    3,561
    
    
    $
    385,906
   Off-Balance Sheet Arrangements
  Critical Accounting Policies
  42




---



##### Table of Contents



Allowance for doubtful accounts receivable
  Inventories
  Deferred Income Taxes
  Long-Lived Assets other than Goodwill
  Goodwill
  Loss Contingencies
  Restructuring Costs
  Revenue Recognition
   43




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##### Table of Contents



Impact of Recently Issued Accounting Pronouncements
 Fair Value Option for Financial Assets and Financial Liabilities
 The
Fair Value Option for Financial Assets and Financial LiabilitiesIncluding an Amendment of FASB
Statement No. 115
 Prior Year Misstatements on Current Year Financial Statements
  Fair Value Measurements
 Fair Value Measurements
 Defined Benefit Pension and Other Postretirement Plans
  Uncertainty in Income Taxes
 Accounting for Uncertainty in Income
Taxes i.e.
 Definition of Settlement in FIN 48
 Definition of Settlement in FASB
Interpretation No. 48
 44




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##### Table of Contents



Stock-Based Compensation
 See
 Tax Effects of Share-Based Payment Awards
 Transition Election
Related to Accounting for Tax Effects of Share-Based Payment Awards
 Inflation
  Cautionary Forward Looking Statements
  
 Item7A. Quantitative and Qualitative Disclosures About Market Risk.
  Interest Rate Risk
   45




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##### Table of Contents



Foreign Exchange Rate Risk
   46




---



##### Table of Contents



Item8. Financial Statements and Supplementary Data.
 INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
 PageReport of Independent Registered Public Accounting Firm
    
    
    48Consolidated Statements of Income for the years ended March 31, 2007, 2006 (Restated) and 2005 (Restated)
    
    
    49Consolidated Balance Sheets as of March 31, 2007 and 2006 (Restated)
    
    
    50Consolidated Statements of Changes in Stockholders Equity and Comprehensive Income for the years ended
March 31, 2007, 2006 (Restated) and 2005 (Restated)
    
    
    51Consolidated Statements of Cash Flows for the years ended March 31, 2007, 2006 (Restated) and 2005 (Restated)
    
    
    52Notes to the Consolidated Financial Statements (Restated)
    
    
    53
 47




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##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
       Internal Control  Integrated
Framework
  
 48




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##### Table of Contents



BLACK BOX CORPORATION
 
 CONSOLIDATED STATEMENTS OF INCOME (1)
 Year Ended March 31,In thousands, except per share amounts
    
    
    
    
    
    (As Restated)
    
    
    (As Restated)2007
    
    
    2006
    
    
    2005RevenuesHotline products
    
    $
    222,903
    
    
    $
    213,946
    
    
    $
    227,601On-Site services
    
    
    793,407
    
    
    
    507,389
    
    
    
    307,475Total
    
    
    1,016,310
    
    
    
    721,335
    
    
    
    535,076Cost of salesHotline products
    
    
    113,780
    
    
    
    108,220
    
    
    
    108,281On-Site services
    
    
    528,541
    
    
    
    330,765
    
    
    
    211,866Total
    
    
    642,321
    
    
    
    438,985
    
    
    
    320,147Gross profit
    
    
    373,989
    
    
    
    282,350
    
    
    
    214,929Selling, general & administrative expenses
    
    
    290,355
    
    
    
    216,911
    
    
    
    165,180Restructuring and other charges
    
    
    --
    
    
    
    5,290
    
    
    
    5,059Intangibles amortization
    
    
    10,285
    
    
    
    4,999
    
    
    
    1,332Operating income
    
    
    73,349
    
    
    
    55,150
    
    
    
    43,358Interest expense (income), net
    
    
    18,407
    
    
    
    9,123
    
    
    
    2,755Other expenses (income), net
    
    
    42
    
    
    
    36
    
    
    
    115Income before provision for income taxes
    
    
    54,900
    
    
    
    45,991
    
    
    
    40,488Provision for income taxes
    
    
    19,291
    
    
    
    15,221
    
    
    
    13,442Net income
    
    $
    35,609
    
    
    $
    30,770
    
    
    $
    27,046Earnings per common share:Basic
    
    $
    2.03
    
    
    $
    1.79
    
    
    $
    1.55Diluted
    
    $
    2.00
    
    
    $
    1.75
    
    
    $
    1.52Weighted average common shares outstandingBasic
    
    
    17,512
    
    
    
    17,164
    
    
    
    17,411Diluted
    
    
    17,808
    
    
    
    17,544
    
    
    
    17,845Dividends per share
    
    $
    0.24
    
    
    $
    0.24
    
    
    $
    0.22
 (1)

    SeeNote 3 of the Notes to the Consolidated Financial Statements See Notes to the Consolidated Financial Statements
 49




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##### Table of Contents



BLACK BOX CORPORATION
 
 CONSOLIDATED BALANCE SHEETS (1)
 March 31,(As Restated)In thousands, except par value
    
    2007
    
    
    2006AssetsCash and cash equivalents
    
    $
    17,157
    
    
    $
    11,207Accounts Receivable, net of allowance for doubtful accounts of $14,253
and $9,517
    
    
    161,733
    
    
    
    116,713Inventories, net
    
    
    72,807
    
    
    
    53,926Costs/estimated earnings in excess of billings on uncompleted contracts
    
    
    61,001
    
    
    
    23,803Deferred tax asset
    
    
    10,562
    
    
    
    8,973Prepaid and other current assets
    
    
    20,495
    
    
    
    16,502Total current assets
    
    
    343,755
    
    
    
    231,124Property, plant and equipment, net
    
    
    39,051
    
    
    
    35,124Goodwill, net
    
    
    568,647
    
    
    
    468,724Intangibles:Customer relationships, net
    
    
    68,016
    
    
    
    24,657Other intangibles, net
    
    
    33,258
    
    
    
    30,783Deferred tax asset
    
    
    33,481
    
    
    
    19,909Other assets
    
    
    3,883
    
    
    
    5,091Total assets
    
    $
    1,090,091
    
    
    $
    815,412LiabilitiesAccounts payable
    
    $
    74,727
    
    
    $
    44,943Accrued compensation and benefits
    
    
    21,811
    
    
    
    13,954Deferred revenue
    
    
    35,630
    
    
    
    22,211Billings in excess of costs/estimated earnings on uncompleted contracts
    
    
    19,027
    
    
    
    8,648Current maturities of long-term debt
    
    
    686
    
    
    
    1,049Income taxes
    
    
    13,430
    
    
    
    9,511Other liabilities
    
    
    61,385
    
    
    
    31,139Total current liabilities
    
    
    226,696
    
    
    
    131,455Long-term debt
    
    
    239,928
    
    
    
    122,673Other liabilities
    
    
    23,771
    
    
    
    8,293Total liabilities
    
    
    490,395
    
    
    
    262,421Stockholders equityPreferred Stock authorized 5,000, par value $1.00, none issued
    
    
    --
    
    
    
    --Common Stock authorized 100,000, par value $.001, 17,527 and 17,593
shares outstanding
    
    
    25
    
    
    
    25Additional paid-in capital
    
    
    441,283
    
    
    
    418,141Treasury stock, at cost 7,436 and 6,935 shares
    
    
    (317,033)
    
    
    
    (296,824)Accumulated other comprehensive income
    
    
    25,399
    
    
    
    13,036Retained earnings
    
    
    450,022
    
    
    
    418,613Total stockholders equity
    
    
    599,696
    
    
    
    552,991Total liabilities and stockholders equity
    
    $
    1,090,091
    
    
    $
    815,412
 (1)

    SeeNote 3 of the Notes to the Consolidated Financial Statements See Notes to the Consolidated Financial Statements
 50




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##### Table of Contents



BLACK BOX CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN
 
 STOCKHOLDERS EQUITY AND COMPREHENSIVE INCOME (1)
 Accumulated Other ComprehensiveCommon Stock
    
    
    
    
    
    
    
    
    
    IncomeForeignAdditional
    
    
    
    
    
    Currency
    
    
    
    
    
    Defined($.001
    
    Paid-in
    
    Treasury
    
    Trans-
    
    Derivative
    
    Benefit
    
    RetainedIn thousands
    
    Shares
    
    par)
    
    Capital
    
    Stock
    
    lation
    
    Instruments
    
    Pension
    
    Earnings
    
    TotalBalance at March 31, 2004
    
    
    23,394
    
    
    $
    23
    
    
    $
    324,219
    
    
    $
    (239,885
    )
    
    $
    17,418
    
    
    $
    454
    
    
    $
    --
    
    
    $
    402,675
    
    
    $
    504,904Cumulative Effect of Restatement
    
    
    --
    
    
    
    --
    
    
    
    46,179
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    (33,786)
    
    
    
    12,393Balance at March 31, 2004 (as restated)
    
    
    23,394
    
    
    $
    23
    
    
    $
    370,398
    
    
    $
    (239,885
    )
    
    $
    17,418
    
    
    $
    454
    
    
    $
    --
    
    
    $
    368,889
    
    
    $
    517,297Comprehensive Income (Loss):Net income (as restated)
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    27,046
    
    
    
    27,046Foreign currency translation adjustment
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    4,987
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    4,987Net change in fair value of cash flow
hedging instruments
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    147
    
    
    
    --
    
    
    
    --
    
    
    
    147Amounts reclassified into results of
operations
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    (454)
    
    
    
    --
    
    
    
    --
    
    
    
    (454)Comprehensive Income (as restated):
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    31,726Stock compensation expense (as restated)
    
    
    --
    
    
    
    --
    
    
    
    5,858
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    5,858Dividends declared
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    (3,955)
    
    
    
    (3,955)Repurchases of common stock
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    (56,912)
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    (56,912)Exercise of options, net of tax
    
    
    381
    
    
    
    1
    
    
    
    7,919
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    7,920Tax impact from stock options (as restated)
    
    
    --
    
    
    
    --
    
    
    
    (646)
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    (646)Balance at March 31, 2005 (as restated)
    
    
    23,775
    
    
    $
    24
    
    
    $
    383,529
    
    
    $
    (296,797
    )
    
    $
    22,405
    
    
    $
    147
    
    
    $
    --
    
    
    $
    391,980
    
    
    $
    501,288Comprehensive Income (Loss):Net income (as restated)
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    30,770
    
    
    
    30,770Foreign currency translation adjustment
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    (10,511)
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    (10,511)Net change in fair value of cash flow
hedging instruments
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    1,142
    
    
    
    --
    
    
    
    --
    
    
    
    1,142Amounts reclassified into results of
operations
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    (147)
    
    
    
    --
    
    
    
    --
    
    
    
    (147)Comprehensive Income (as restated):
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    21,254Stock compensation expense (as restated)
    
    
    --
    
    
    
    --
    
    
    
    11,045
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    11,045Dividends declared
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    (4,137)
    
    
    
    (4,137)Repurchases of common stock
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    (27)
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    (27)Exercise of options, net of tax
    
    
    753
    
    
    
    1
    
    
    
    23,320
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    23,321Tax impact from stock options (as restated)
    
    
    --
    
    
    
    --
    
    
    
    247
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    247Balance at March 31, 2006 (as restated)
    
    
    24,528
    
    
    $
    25
    
    
    $
    418,141
    
    
    $
    (296,824
    )
    
    $
    11,894
    
    
    $
    1,142
    
    
    $
    --
    
    
    $
    418,613
    
    
    $
    552,991Comprehensive Income (Loss):Net income
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    35,609
    
    
    
    35,609Foreign currency translation adjustment
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    11,458
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    11,458Net change in fair value of cash flow
hedging instruments (net of tax)
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    (111)
    
    
    
    --
    
    
    
    --
    
    
    
    (111)Amounts reclassified into results of
operations
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    (654)
    
    
    
    --
    
    
    
    --
    
    
    
    (654)Comprehensive Income:
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    46,302Adjustment to initially apply SFAS No. 158
(net of tax)
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    1,670
    
    
    
    --
    
    
    
    1,670Stock compensation expense
    
    
    --
    
    
    
    --
    
    
    
    9,308
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    9,308Dividends declared
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    (4,200)
    
    
    
    (4,200)Repurchases of common stock
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    (20,209)
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    (20,209)Exercise of options, net of tax
    
    
    435
    
    
    
    --
    
    
    
    14,970
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    14,970Tax impact from stock options
    
    
    --
    
    
    
    --
    
    
    
    (1,136)
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    (1,136)Balance at March 31, 2007
    
    
    24,963
    
    
    $
    25
    
    
    $
    441,283
    
    
    $
    (317,033
    )
    
    $
    23,352
    
    
    $
    377
    
    
    $
    1,670
    
    
    $
    450,022
    
    
    $
    599,696
 (1)
    
    SeeNote 3 of the Notes to the Consolidated Financial Statements See Notes to the Consolidated Financial Statements
 51




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##### Table of Contents



BLACK BOX CORPORATION
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS (1)
 Year Ended March 31,(As Restated)
    
    
    (As Restated)In thousands
    
    2007
    
    
    2006
    
    
    2005Operating ActivitiesNet income
    
    $
    35,609
    
    
    $
    30,770
    
    
    $
    27,046Adjustments to reconcile net income to net cash provided
by (used for) operating activities:Intangibles amortization and depreciation
    
    
    22,610
    
    
    
    13,930
    
    
    
    7,955Deferred taxes
    
    
    (1,266)
    
    
    
    (1,222)
    
    
    
    (1,835)Stock compensation expense
    
    
    9,308
    
    
    
    11,045
    
    
    
    5,858Tax impact from stock options
    
    
    1,136
    
    
    
    (247)
    
    
    
    646Change in fair value of interest rate swap
    
    
    1,734
    
    
    
    --
    
    
    
    --Changes in operating assets and liabilities (net of
acquisitions):Accounts receivable, net
    
    
    19,202
    
    
    
    9,369
    
    
    
    8,878Inventories, net
    
    
    (3,595)
    
    
    
    5,000
    
    
    
    (76)All other current assets excluding deferred tax asset
    
    
    3,349
    
    
    
    2,799
    
    
    
    3,811Liabilities exclusive of long term debt
    
    
    (51,451)
    
    
    
    (19,647)
    
    
    
    (77)Net cash provided by (used for) operating activities
    
    $
    36,636
    
    
    $
    51,797
    
    
    $
    52,206Investing ActivitiesCapital expenditures
    
    $
    (5,886)
    
    
    $
    (4,115)
    
    
    $
    (3,506)Capital disposals
    
    
    1,017
    
    
    
    1,445
    
    
    
    1,187Acquisition of businesses (payments)/recoveries
    
    
    (127,716)
    
    
    
    (40,682)
    
    
    
    (102,553)Prior merger-related (payments)/recoveries
    
    
    (2,324)
    
    
    
    (378)
    
    
    
    107Net cash provided by (used for) investing activities
    
    $
    (134,909
    )
    
    $
    (43,730
    )
    
    $
    (104,765
    )Financing ActivitiesProceeds from borrowings
    
    $
    354,254
    
    
    $
    192,882
    
    
    $
    238,409Repayment of borrowings
    
    
    (240,079)
    
    
    
    (218,989)
    
    
    
    (127,959)Repayment on discounted lease rentals
    
    
    (30)
    
    
    
    (890)
    
    
    
    (458)Proceeds from exercise of options
    
    
    14,970
    
    
    
    23,320
    
    
    
    7,919Deferred financing costs
    
    
    --
    
    
    
    (180)
    
    
    
    (1,352)Payment of dividends
    
    
    (4,203)
    
    
    
    (4,094)
    
    
    
    (3,847)Purchase of treasury stock
    
    
    (20,209)
    
    
    
    (27)
    
    
    
    (56,912)Net cash provided by (used for) financing activities
    
    $
    104,703
    
    
    $
    (7,978
    )
    
    $
    55,800Foreign currency exchange impact on cash
    
    $
    (480)
    
    
    $
    (474)
    
    
    $
    (955)Increase / (decrease) in cash and cash equivalents
    
    $
    5,950
    
    
    $
    (385)
    
    
    $
    2,286Cash and cash equivalents at beginning of period
    
    $
    11,207
    
    
    $
    11,592
    
    
    $
    9,306Cash and cash equivalents at end of period
    
    $
    17,157
    
    
    $
    11,207
    
    
    $
    11,592Supplemental Cash Flow:Cash paid for interest
    
    $
    15,333
    
    
    $
    8,336
    
    
    $
    3,045Cash paid for income taxes
    
    
    16,877
    
    
    
    17,223
    
    
    
    17,064Non-cash financing activities:Dividends payable
    
    
    1,052
    
    
    
    1,055
    
    
    
    1,011Capital leases
    
    
    915
    
    
    
    1,214
    
    
    
    714
 (1)
    
    SeeNote 3 of the Notes to the Consolidated Financial Statements See Notes to the Consolidated Financial Statements
 52




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##### Table of Contents



BLACK BOX CORPORATION
 
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
 Note 1: Business and Basis of Presentation
     Note 2: Significant Accounting Policies
 Cash and Cash Equivalents
  Allowance for doubtful accounts receivable
  Inventories
  Property, Plant and Equipment
   53




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##### Table of Contents



Goodwill
  Intangible Assets
  Derivative Instruments and Hedging Activities
 Foreign Currency Forward Contract
  Interest Rate Swap
  Foreign Currency Translation
  Revenue
   54




---



##### Table of Contents



Sales returns
 Warranties:
 Shipping and Handling Fees and Costs 
 Stock-Based Compensation
  See
  Expected volatility:
 Dividend yield:
 Risk-free interest rate:
 Annual forfeiture rate and expected holding period:
 Amortization period:
 Advertising Expenses
   55




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##### Table of Contents



Income Taxes
  Earnings per common Share
  Recent Accounting Pronouncements
 Fair Value Option for Financial Assets and Financial Liabilities
 The
Fair Value Option for Financial Assets and Financial LiabilitiesIncluding an Amendment of FASB
Statement No. 115
 Prior Year Misstatements on Current Year Financial Statements
  Fair Value Measurements
 Fair Value Measurements
 Defined Benefit Pension and Other Postretirement Plans
   56




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##### Table of Contents



Uncertainty in Income Taxes
 Accounting for Uncertainty in Income
Taxes i.e.
 Definition of Settlement in FIN 48
 Definition of Settlement in FASB
Interpretation No. 48
 Stock-Based Compensation
    See
 Tax Effects of Share-Based Payment Awards
  Note 3: Restatement of Consolidated Financial Statements
 Restatement through March 31, 2006
 Background
  57




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##### Table of Contents



Findings of the Audit Committee
   i.e.
 
    
    $4.2 million for the period from Fiscal 1993 through Fiscal 1997 ($0.2 million for
directors, $2.5 million for officers and $1.5 million for rank and file employees)
    
    $45.6 million for the period from Fiscal 1998 through August 2002 ($1.1 million for
directors, $25.7 million for officers and $18.7 million for rank and file employees)
    
    $21.8 million for the period from August 2002 to the present ($0.04 million for directors,
$0.6 million for officers and $21.1 million for rank and file employees)
 58




---



##### Table of Contents



Lack of Adequate Documentation :
 Grant Approvals :
  Option Pricing :
  Internal Controls :
 59




---



##### Table of Contents



Procedural and Remedial Actions
      Restatement Methodologies
   60




---



##### Table of Contents



Grants with Appropriate Committee Approval
 Grants with Other Approvals
 Grants Lacking Adequate Documentation
  61




---



##### Table of Contents



i.e.
  62




---



##### Table of Contents



Other adjustments through March 31, 2006
  Summary
  1Q07 and 2Q07 Restatement
 Stock-based compensation expense
  Accounting for derivatives
 Accounting for Derivative Instruments and Hedging
Activities
   63




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##### Table of Contents



(As
    
    
    
    
    
    
    
    
    
    
    Adjust-
    
    
    
    
    
    
    (As
    
    
    
    
    
    
    (AsPreviously
    
    
    Adjust-
    
    
    Income
    
    
    ment,
    
    
    (As
    
    
    Previously
    
    
    
    
    
    
    Restated)Reported)
    
    
    ment,
    
    
    Tax
    
    
    Net of
    
    
    Restated)
    
    
    Reported)
    
    
    Adjust-
    
    
    DilutedNet Income
    
    
    Pre-Tax
    
    
    Benefit
    
    
    Tax
    
    
    Net Income
    
    
    Diluted EPS
    
    
    ment
    
    
    EPSFY 94
    
    $
    13,370
    
    
    $
    43
    
    
    $
    (19
    )
    
    $
    24
    
    
    $
    13,346
    
    
    $
    0.83
    
    
    $
    --
    
    
    $
    0.83FY 95
    
    
    14,515
    
    
    
    461
    
    
    
    (144
    )
    
    
    317
    
    
    
    14,198
    
    
    
    0.89
    
    
    
    (0.02
    )
    
    
    0.87FY 96
    
    
    18,278
    
    
    
    406
    
    
    
    (151
    )
    
    
    255
    
    
    
    18,023
    
    
    
    1.10
    
    
    
    (0.01
    )
    
    
    1.09FY 97
    
    
    24,792
    
    
    
    1,172
    
    
    
    (456
    )
    
    
    716
    
    
    
    24,076
    
    
    
    1.40
    
    
    
    (0.04
    )
    
    
    1.36FY 98
    
    
    32,404
    
    
    
    3,595
    
    
    
    (1,393
    )
    
    
    2,202
    
    
    
    30,202
    
    
    
    1.79
    
    
    
    (0.12
    )
    
    
    1.67FY 99
    
    
    38,145
    
    
    
    4,506
    
    
    
    (1,732
    )
    
    
    2,774
    
    
    
    35,371
    
    
    
    2.09
    
    
    
    (0.15
    )
    
    
    1.94FY 00
    
    
    48,852
    
    
    
    5,778
    
    
    
    (2,209
    )
    
    
    3,569
    
    
    
    45,283
    
    
    
    2.60
    
    
    
    (0.19
    )
    
    
    2.41FY 01
    
    
    64,190
    
    
    
    10,290
    
    
    
    (3,953
    )
    
    
    6,337
    
    
    
    57,853
    
    
    
    3.22
    
    
    
    (0.32
    )
    
    
    2.90FY 02
    
    
    62,042
    
    
    
    11,333
    
    
    
    (4,381
    )
    
    
    6,952
    
    
    
    55,090
    
    
    
    2.97
    
    
    
    (0.33
    )
    
    
    2.64FY 03
    
    
    48,685
    
    
    
    8,927
    
    
    
    (2,328
    )
    
    
    6,599
    
    
    
    42,086
    
    
    
    2.39
    
    
    
    (0.32
    )
    
    
    2.07Cumulative
03/31/03
    
    $
    365,273
    
    
    $
    46,511
    
    
    $
    (16,766
    )
    
    $
    29,745
    
    
    $
    335,528
    
    
    $
    19.29
    
    
    $
    (1.52
    )
    
    $
    17.77FY 04
    
    
    47,243
    
    
    
    8,197
    
    
    
    (4,156
    )
    
    
    4,041
    
    
    
    43,202
    
    
    
    2.52
    
    
    
    (0.22
    )
    
    
    2.30Cumulative 03/31/04
    
    $
    412,516
    
    
    $
    54,708
    
    
    $
    (20,922
    )
    
    $
    33,786
    
    
    $
    378,730
    
    
    $
    21.80
    
    
    $
    (1.73
    )
    
    $
    20.07FY 05
    
    
    29,912
    
    
    
    5,178
    
    
    
    (2,312
    )
    
    
    2,866
    
    
    
    27,046
    
    
    
    1.68
    
    
    
    (0.16
    )
    
    
    1.52Cumulative
 03/31/05
    
    $
    442,428
    
    
    $
    59,886
    
    
    $
    (23,234
    )
    
    $
    36,652
    
    
    $
    405,776
    
    
    $
    23.48
    
    
    $
    (1.89
    )
    
    $
    21.591Q06
    
    
    7,394
    
    
    
    1,120
    
    
    
    (442
    )
    
    
    678
    
    
    
    6,716
    
    
    
    0.43
    
    
    
    (0.04
    )
    
    
    0.392Q06
    
    
    12,797
    
    
    
    1,126
    
    
    
    (444
    )
    
    
    682
    
    
    
    12,115
    
    
    
    0.74
    
    
    
    (0.04
    )
    
    
    0.703Q06
    
    
    12,511
    
    
    
    2,431
    
    
    
    (959
    )
    
    
    1,472
    
    
    
    11,039
    
    
    
    0.70
    
    
    
    (0.08
    )
    
    
    0.624Q06
    
    
    4,656
    
    
    
    6,368
    
    
    
    (2,612
    )
    
    
    3,756
    
    
    
    900
    
    
    
    0.26
    
    
    
    (0.21
    )
    
    
    0.05FY 06
    
    $
    37,358
    
    
    $
    11,045
    
    
    $
    (4,457
    )
    
    $
    6,588
    
    
    $
    30,770
    
    
    $
    2.13
    
    
    $
    (0.37
    )
    
    $
    1.76Cumulative 03/31/06
    
    $
    479,786
    
    
    $
    70,931
    
    
    $
    (27,691
    )
    
    $
    43,240
    
    
    $
    436,546
    
    
    $
    25.61
    
    
    $
    (2.26
    )
    
    $
    23.351Q07
    
    
    7,807
    
    
    
    1,629
    
    
    
    (635
    )
    
    
    994
    
    
    
    6,813
    
    
    
    0.43
    
    
    
    (0.06
    )
    
    
    0.372Q07
    
    
    13,079
    
    
    
    2,210
    
    
    
    (806
    )
    
    
    1,404
    
    
    
    11,675
    
    
    
    0.74
    
    
    
    (0.08
    )
    
    
    0.662QYTD07
    
    $
    20,886
    
    
    $
    3,839
    
    
    $
    (1,441
    )
    
    $
    2,398
    
    
    $
    18,488
    
    
    $
    1.18
    
    
    $
    (0.14
    )
    
    $
    1.04Cumulative 09/30/06
    
    $
    500,672
    
    
    $
    74,770
    
    
    $
    (29,132
    )
    
    $
    45,638
    
    
    $
    455,034
    
    
    $
    26.78
    
    
    $
    (2.39
    )
    
    $
    24.39
 Income Tax Considerations
   64




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##### Table of Contents



Expenses Incurred by the Company
  Restatement Impact on the Consolidated Statements of Income
  Year Ended March 31, 2006As PreviouslyIn thousands, except per share amounts
    
    Reported
    
    
    Adjustment
    
    
    As RestatedRevenuesHotline products
    
    $
    213,946
    
    
    $
    --
    
    
    $
    213,946On-Site services
    
    
    507,389
    
    
    
    --
    
    
    
    507,389Total
    
    
    721,335
    
    
    
    --
    
    
    
    721,335Cost of salesHotline products
    
    
    108,220
    
    
    
    --
    
    
    
    108,220On-Site services
    
    
    330,765
    
    
    
    --
    
    
    
    330,765Total
    
    
    438,985
    
    
    
    --
    
    
    
    438,985Gross profit
    
    
    282,350
    
    
    
    --
    
    
    
    282,350Selling, general & administrative expenses
    
    
    205,866
    
    
    
    11,045
    
    
    
    216,911Restructuring and other charges
    
    
    5,290
    
    
    
    --
    
    
    
    5,290Intangibles amortization
    
    
    4,999
    
    
    
    --
    
    
    
    4,999Operating income
    
    
    66,195
    
    
    
    (11,045
    )
    
    
    55,150Interest expense (income), net
    
    
    9,123
    
    
    
    --
    
    
    
    9,123Other expenses (income), net
    
    
    36
    
    
    
    --
    
    
    
    36Income before provision for income taxes
    
    
    57,036
    
    
    
    (11,045
    )
    
    
    45,991Provision for income taxes
    
    
    19,678
    
    
    
    (4,457
    )
    
    
    15,221Net income
    
    $
    37,358
    
    
    $
    (6,588
    )
    
    $
    30,770Earnings per common share:Basic
    
    $
    2.18
    
    
    $
    (0.39
    )
    
    $
    1.79Diluted
    
    $
    2.13
    
    
    $
    (0.38
    )
    
    $
    1.75Weighted average common shares outstandingBasic
    
    
    17,164
    
    
    
    --
    
    
    
    17,164Diluted
    
    
    17,544
    
    
    
    --
    
    
    
    17,544Dividends per share
    
    $
    0.24
    
    
    $
    --
    
    
    $
    0.24
 65




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##### Table of Contents



Year Ended March 31, 2005As PreviouslyIn thousands, except per share amounts
    
    Reported
    
    
    Adjustment
    
    
    As RestatedRevenuesHotline products
    
    $
    227,601
    
    
    $
    --
    
    
    $
    227,601On-Site services
    
    
    307,475
    
    
    
    --
    
    
    
    307,475Total
    
    
    535,076
    
    
    
    --
    
    
    
    535,076Cost of salesHotline products
    
    
    108,281
    
    
    
    --
    
    
    
    108,281On-Site services
    
    
    211,866
    
    
    
    --
    
    
    
    211,866Total
    
    
    320,147
    
    
    
    --
    
    
    
    320,147Gross profit
    
    
    214,929
    
    
    
    --
    
    
    
    214,929Selling, general & administrative expenses
    
    
    160,002
    
    
    
    5,178
    
    
    
    165,180Restructuring and other charges
    
    
    5,059
    
    
    
    --
    
    
    
    5,059Intangibles amortization
    
    
    1,332
    
    
    
    --
    
    
    
    1,332Operating income
    
    
    48,536
    
    
    
    (5,178
    )
    
    
    43,358Interest expense (income), net
    
    
    2,755
    
    
    
    --
    
    
    
    2,755Other expenses (income), net
    
    
    115
    
    
    
    --
    
    
    
    115Income before provision for income taxes
    
    
    45,666
    
    
    
    (5,178
    )
    
    
    40,488Provision for income taxes
    
    
    15,754
    
    
    
    (2,312
    )
    
    
    13,442Net income
    
    $
    29,912
    
    
    $
    (2,866
    )
    
    $
    27,046Earnings per common share:Basic
    
    $
    1.72
    
    
    $
    (0.17
    )
    
    $
    1.55Diluted
    
    $
    1.68
    
    
    $
    (0.16
    )
    
    $
    1.52Weighted average common shares outstandingBasic
    
    
    17,411
    
    
    
    --
    
    
    
    17,411Diluted
    
    
    17,845
    
    
    
    --
    
    
    
    17,845Dividends per share
    
    $
    0.22
    
    
    $
    --
    
    
    $
    0.22
 66




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##### Table of Contents



Restatement Impact on the Consolidated Balance Sheets
  March 31, 2006As PreviouslyReported
    
    
    Adjustment
    
    
    As RestatedAssetsCash and cash equivalents
    
    $
    11,207
    
    
    $
    --
    
    
    $
    11,207Accounts receivable, net
    
    
    116,713
    
    
    
    --
    
    
    
    116,713Inventories, net
    
    
    53,926
    
    
    
    --
    
    
    
    53,926Costs / estimated earnings in excess of
billings on uncompleted contracts
    
    
    23,803
    
    
    
    --
    
    
    
    23,803Deferred tax asset
    
    
    8,973
    
    
    
    --
    
    
    
    8,973Prepaid and other current assets
    
    
    16,502
    
    
    
    --
    
    
    
    16,502Total current assets
    
    
    231,124
    
    
    
    --
    
    
    
    231,124Property, plant and equipment, net
    
    
    35,124
    
    
    
    --
    
    
    
    35,124Goodwill, net
    
    
    468,724
    
    
    
    --
    
    
    
    468,724Intangibles:Customer relationships, net
    
    
    24,657
    
    
    
    --
    
    
    
    24,657Other intangibles, net
    
    
    30,783
    
    
    
    --
    
    
    
    30,783Deferred tax asset
    
    
    4,231
    
    
    
    15,678
    
    
    
    19,909Other assets
    
    
    5,091
    
    
    
    --
    
    
    
    5,091Total assets
    
    $
    799,734
    
    
    $
    15,678
    
    
    $
    815,412LiabilitiesAccounts payable
    
    $
    44,943
    
    
    $
    --
    
    
    $
    44,943Accrued compensation and benefits
    
    
    13,954
    
    
    
    --
    
    
    
    13,954Deferred revenue
    
    
    22,211
    
    
    
    --
    
    
    
    22,211Billings in excess of costs / estimated
earnings on uncompleted contracts
    
    
    8,648
    
    
    
    --
    
    
    
    8,648Current maturities of long-term debt
    
    
    1,049
    
    
    
    --
    
    
    
    1,049Income taxes
    
    
    5,924
    
    
    
    3,587
    
    
    
    9,511Other liabilities
    
    
    31,139
    
    
    
    --
    
    
    
    31,139Total current liabilities
    
    
    127,868
    
    
    
    3,587
    
    
    
    131,455Long-term debt
    
    
    122,673
    
    
    
    --
    
    
    
    122,673Other liabilities
    
    
    8,293
    
    
    
    --
    
    
    
    8,293Total liabilities
    
    
    258,834
    
    
    
    3,587
    
    
    
    262,421Stockholders equityPreferred stock
    
    
    --
    
    
    
    --
    
    
    
    --Common stock
    
    
    25
    
    
    
    --
    
    
    
    25Additional paid-in capital
    
    
    362,810
    
    
    
    55,331
    
    
    
    418,141Treasury stock
    
    
    (296,824
    )
    
    
    --
    
    
    
    (296,824
    )Accumulated other comprehensive income
    
    
    13,036
    
    
    
    --
    
    
    
    13,036Retained earnings
    
    
    461,853
    
    
    
    (43,240
    )
    
    
    418,613Total stockholders equity
    
    
    540,900
    
    
    
    12,091
    
    
    
    552,991Total liabilities and stockholders equity
    
    $
    799,734
    
    
    $
    15,678
    
    
    $
    815,412
 67




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##### Table of Contents



Restatement Impact on the Consolidated Statement of Cash Flows
  Year Ended March 31, 2006As PreviouslyIn thousands
    
    Reported
    
    
    Adjustment
    
    
    As RestatedOperating ActivitiesNet income
    
    $
    37,358
    
    
    $
    (6,588
    )
    
    $
    30,770Adjustments to reconcile net income to net cash provided
by (used for) operating activities:Intangibles amortization and depreciation
    
    
    13,930
    
    
    
    --
    
    
    
    13,930Deferred taxes
    
    
    (212
    )
    
    
    (1,010
    )
    
    
    (1,222
    )Stock compensation expense
    
    
    --
    
    
    
    11,045
    
    
    
    11,045Tax impact from stock options
    
    
    (3,200
    )
    
    
    2,953
    
    
    
    (247
    )Changes in operating assets and liabilities:Accounts receivable, net
    
    
    9,369
    
    
    
    --
    
    
    
    9,369Inventories, net
    
    
    5,000
    
    
    
    --
    
    
    
    5,000All other current assets excluding deferred tax asset
    
    
    9,199
    
    
    
    (6,400
    )
    
    
    2,799Liabilities exclusive of long term debt
    
    
    (19,647
    )
    
    
    --
    
    
    
    (19,647
    )Net cash provided by (used for) operating activities
    
    $
    51,797
    
    
    $
    --
    
    
    $
    51,797Investing ActivitiesCapital expenditures
    
    $
    (4,115
    )
    
    $
    --
    
    
    $
    (4,115
    )Capital disposals
    
    
    1,445
    
    
    
    --
    
    
    
    1,445Acquisition of businesses (payments)/recoveries
    
    
    (40,682
    )
    
    
    --
    
    
    
    (40,682
    )Prior merger-related (payments)/recoveries
    
    
    (378
    )
    
    
    --
    
    
    
    (378
    )Net cash provided by (used for) investing activities
    
    $
    (43,730
    )
    
    $
    --
    
    
    $
    (43,730
    )Financing ActivitiesProceeds from borrowings
    
    $
    192,882
    
    
    $
    --
    
    
    $
    192,882Repayment of borrowings
    
    
    (218,989
    )
    
    
    --
    
    
    
    (218,989
    )Repayment on discounted lease rentals
    
    
    (890
    )
    
    
    --
    
    
    
    (890
    )Proceeds from exercise of options
    
    
    23,320
    
    
    
    --
    
    
    
    23,320Deferred financing costs
    
    
    (180
    )
    
    
    --
    
    
    
    (180
    )Payment of dividends
    
    
    (4,094
    )
    
    
    --
    
    
    
    (4,094
    )Purchase of treasury stock
    
    
    (27
    )
    
    
    --
    
    
    
    (27
    )Net cash provided by (used for) financing activities
    
    $
    (7,978
    )
    
    $
    --
    
    
    $
    (7,978
    )Foreign currency exchange impact on cash
    
    $
    (474
    )
    
    $
    --
    
    
    $
    (474
    )Increase / (decrease) in cash and cash equivalents
    
    $
    (385
    )
    
    $
    --
    
    
    $
    (385
    )Cash and cash equivalents at beginning of period
    
    $
    11,592
    
    
    $
    --
    
    
    $
    11,592Cash and cash equivalents at end of period
    
    $
    11,207
    
    
    $
    --
    
    
    $
    11,207Supplemental Cash Flow:Cash paid for interest
    
    $
    8,336
    
    
    $
    --
    
    
    $
    8,336Cash paid for income taxes
    
    
    17,223
    
    
    
    --
    
    
    
    17,223Non-cash financing activities:Dividends payable
    
    
    1,055
    
    
    
    --
    
    
    
    1,055Capital leases
    
    
    1,214
    
    
    
    --
    
    
    
    1,214
 68




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##### Table of Contents



Year Ended March 31, 2005As PreviouslyIn thousands
    
    Reported
    
    
    Adjustment
    
    
    As RestatedOperating ActivitiesNet income
    
    $
    29,912
    
    
    $
    (2,866
    )
    
    $
    27,046Adjustments to reconcile net income to net cash provided
by (used for) operating activities:Intangibles amortization and depreciation
    
    
    7,955
    
    
    
    --
    
    
    
    7,955Deferred taxes
    
    
    (77
    )
    
    
    (1,758
    )
    
    
    (1,835
    )Stock compensation expense
    
    
    680
    
    
    
    5,178
    
    
    
    5,858Tax impact from stock options
    
    
    (3,472
    )
    
    
    4,118
    
    
    
    646Changes in operating assets and liabilities:Accounts receivable, net
    
    
    8,878
    
    
    
    --
    
    
    
    8,878Inventories, net
    
    
    (76
    )
    
    
    --
    
    
    
    (76
    )All other current assets excluding deferred tax asset
    
    
    3,811
    
    
    
    --
    
    
    
    3,811Liabilities exclusive of long term debt
    
    
    4,595
    
    
    
    (4,672
    )
    
    
    (77
    )Net cash provided by (used for) operating activities
    
    $
    52,206
    
    
    $
    --
    
    
    $
    52,206Investing ActivitiesCapital expenditures
    
    $
    (3,506
    )
    
    $
    --
    
    
    $
    (3,506
    )Capital disposals
    
    
    1,187
    
    
    
    --
    
    
    
    1,187Acquisition of businesses (payments)/recoveries
    
    
    (102,553
    )
    
    
    --
    
    
    
    (102,553
    )Prior merger-related (payments)/recoveries
    
    
    107
    
    
    
    --
    
    
    
    107Net cash provided by (used for) investing activities
    
    $
    (104,765
    )
    
    $
    --
    
    
    $
    (104,765
    )Financing ActivitiesProceeds from borrowings
    
    $
    238,409
    
    
    $
    --
    
    
    $
    238,409Repayment of borrowings
    
    
    (127,959
    )
    
    
    --
    
    
    
    (127,959
    )Repayment on discounted lease rentals
    
    
    (458
    )
    
    
    --
    
    
    
    (458
    )Proceeds from exercise of options
    
    
    7,919
    
    
    
    --
    
    
    
    7,919Deferred financing costs
    
    
    (1,352
    )
    
    
    --
    
    
    
    (1,352
    )Payment of dividends
    
    
    (3,847
    )
    
    
    --
    
    
    
    (3,847
    )Purchase of treasury stock
    
    
    (56,912
    )
    
    
    --
    
    
    
    (56,912
    )Net cash provided by (used for) financing activities
    
    $
    55,800
    
    
    $
    --
    
    
    $
    55,800Foreign currency exchange impact on cash
    
    $
    (955
    )
    
    $
    --
    
    
    $
    (955
    )Increase / (decrease) in cash and cash equivalents
    
    $
    2,286
    
    
    $
    --
    
    
    $
    2,286Cash and cash equivalents at beginning of period
    
    $
    9,306
    
    
    $
    --
    
    
    $
    9,306Cash and cash equivalents at end of period
    
    $
    11,592
    
    
    $
    --
    
    
    $
    11,592Supplemental Cash Flow:Cash paid for interest
    
    $
    3,045
    
    
    $
    --
    
    
    $
    3,045Cash paid for income taxes
    
    
    17,064
    
    
    
    --
    
    
    
    17,064Non-cash financing activities:Dividends payable
    
    
    1,011
    
    
    
    --
    
    
    
    1,011Capital leases
    
    
    714
    
    
    
    --
    
    
    
    714
 69




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##### Table of Contents



Note 4: Inventories
  March 31,2007
    
    
    2006Raw materials
    
    $
    1,774
    
    
    $
    1,426Finished goods
    
    
    93,794
    
    
    
    66,787Subtotal
    
    
    95,568
    
    
    
    68,213Excess and obsolete inventory reserves
    
    
    (22,761
    )
    
    
    (14,287
    )Inventory, net
    
    $
    72,807
    
    
    $
    53,926
 Note 5: Property, Plant and Equipment
  March 31,2007
    
    
    2006Land
    
    $
    2,369
    
    
    $
    2,369Building and improvements
    
    
    27,537
    
    
    
    26,052Machinery
    
    
    69,525
    
    
    
    58,562Subtotal
    
    
    99,431
    
    
    
    86,983Accumulated depreciation
    
    
    (60,380
    )
    
    
    (51,859
    )Property, plant and equipment, net
    
    $
    39,051
    
    
    $
    35,124
  Note 6: Goodwill
  NorthAmerica
    
    
    Europe
    
    
    All Other
    
    
    TotalBalance as of March 31, 2005
    
    $
    371,865
    
    
    $
    70,734
    
    
    $
    1,968
    
    
    $
    444,567Currency translation
    
    
    24
    
    
    
    (5,271
    )
    
    
    33
    
    
    
    (5,214
    )Current
period acquisitions (Note 10)
    
    
    28,993
    
    
    
    --
    
    
    
    --
    
    
    
    28,993Earn-out payments
    
    
    --
    
    
    
    --
    
    
    
    41
    
    
    
    41Other
    
    
    116
    
    
    
    221
    
    
    
    --
    
    
    
    337Balance as of March 31, 2006
    
    $
    400,998
    
    
    $
    65,684
    
    
    $
    2,042
    
    
    $
    468,724Currency translation
    
    
    10
    
    
    
    7,381
    
    
    
    78
    
    
    
    7,469Current
period acquisitions (Note 10)
    
    
    95,911
    
    
    
    --
    
    
    
    --
    
    
    
    95,911Prior
period acquisitions
    
    
    (3,544
    )
    
    
    --
    
    
    
    --
    
    
    
    (3,544
    )Other
    
    
    87
    
    
    
    --
    
    
    
    --
    
    
    
    87Balance as of March 31, 2007
    
    $
    493,462
    
    
    $
    73,065
    
    
    $
    2,120
    
    
    $
    568,647
  70




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##### Table of Contents



Note 7: Intangible Assets
  March 31,2007

    
    2006Gross
    
    
    
    
    
    
    Net
    
    
    Gross
    
    
    
    
    
    
    NetCarrying
    
    
    Accum.
    
    
    Carrying
    
    
    Carrying
    
    
    Accum.
    
    
    CarryingAmount
    
    
    Amort.
    
    
    Amount
    
    
    Amount
    
    
    Amort.
    
    
    AmountDefinite-livedNon-compete agreements
    
    $
    7,963
    
    
    $
    3,414
    
    
    $
    4,549
    
    
    $
    4,894
    
    
    $
    1,851
    
    
    $
    3,043Customer relationships
    
    
    71,989
    
    
    
    3,973
    
    
    
    68,016
    
    
    
    25,654
    
    
    
    997
    
    
    
    24,657Acquired backlog
    
    
    10,783
    
    
    
    9,813
    
    
    
    970
    
    
    
    3,935
    
    
    
    3,934
    
    
    
    1Total
    
    $
    90,735
    
    
    $
    17,200
    
    
    $
    73,535
    
    
    $
    34,483
    
    
    $
    6,782
    
    
    $
    27,701Indefinite-livedTrademarks
    
    
    35,992
    
    
    
    8,253
    
    
    
    27,739
    
    
    
    35,992
    
    
    
    8,253
    
    
    
    27,739Total
    
    $
    126,727
    
    
    $
    25,453
    
    
    $
    101,274
    
    
    $
    70,475
    
    
    $
    15,035
    
    
    $
    55,440
   Non-Competes
    
    
    CustomerTrademarks
    
    
    and Backlog
    
    
    Relationships
    
    
    TotalBalance as of March 31, 2005
    
    $
    27,739
    
    
    $
    4,833
    
    
    $
    11,585
    
    
    $
    44,157Amortization expense
    
    
    --
    
    
    
    (4,116
    )
    
    
    (883
    )
    
    
    (4,999
    )Currency translation
    
    
    --
    
    
    
    (24
    )
    
    
    --
    
    
    
    (24
    )Current period acquisitions (Note 10)
    
    
    --
    
    
    
    2,351
    
    
    
    13,955
    
    
    
    16,306Balance at March 31, 2006
    
    $
    27,739
    
    
    $
    3,044
    
    
    $
    24,657
    
    
    $
    55,440Amortization expense
    
    
    --
    
    
    
    (7,309
    )
    
    
    (2,976
    )
    
    
    (10,285
    )Currency translation
    
    
    --
    
    
    
    52
    
    
    
    --
    
    
    
    52Current period acquisitions (Note 10)
    
    
    --
    
    
    
    8,977
    
    
    
    39,931
    
    
    
    48,908Prior period acquisitions
    
    
    --
    
    
    
    755
    
    
    
    6,404
    
    
    
    7,159Balance at March 31, 2007
    
    $
    27,739
    
    
    $
    5,519
    
    
    $
    68,016
    
    
    $
    101,274
 see
  Years Ending March 31,2008
    
    $
    6,3632009
    
    
    5,2212010
    
    
    5,0922011
    
    
    4,5182012
    
    
    4,135Thereafter
    
    
    48,206Total
    
    $
    73,535
 71




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##### Table of Contents



Note 8: Indebtedness
  March 31,2007
    
    
    2006Revolving credit agreement
    
    $
    236,715
    
    
    $
    121,303Interest rate swap fair value (SeeNote 9)
    
    
    1,734
    
    
    
    --Capital lease obligations
    
    
    2,123
    
    
    
    1,891Other
    
    
    42
    
    
    
    528Total debt
    
    $
    240,614
    
    
    $
    123,722Less: current portion
    
    
    (686
    )
    
    
    (1,049
    )Long-term debt
    
    $
    239,928
    
    
    $
    122,673
 Revolving Credit Agreement
   Capital
Lease Obligations -
 Other
 Unused Available Borrowings
  Years Ending March 31,2008
    
    $
    6862009
    
    
    7142010
    
    
    4792011
    
    
    238,6882012
    
    
    47Total
    
    $
    240,614
 72




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##### Table of Contents



Note 9: Derivative Instruments and Hedging Activities
 Foreign Currency Forward Contracts:
    Interest Rate Swap:
   Note 10: Acquisitions
 Fiscal 2007
     At April 30, 2006Current assets, primarily consisting of accounts receivable and inventories
    
    $
    90,448Property, plant and equipment
    
    
    9,996Other non-current assets
    
    
    19,623Intangible assets
    
    
    24,100Goodwill
    
    
    73,995Total assets acquired
    
    $
    218,162Current liabilities, primarily consisting of deferred revenue,
restructuring reserve and accrued expenses
    
    $
    113,705Other non-current liabilities, primarily consisting of restructuring reserve
    
    
    23,734Total liabilities acquired
    
    $
    137,439Net assets acquired
    
    $
    80,723
 73




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##### Table of Contents



At April 30, 2006Backlog
    
    $
    6,700Customer relationships and contracts
    
    
    17,400Total intangible assets*
    
    $
    24,100
 *
    Business Combinations
     Fiscal Year Ended March 31,2007
    
    
    2006Revenue (Pro-forma)
    
    $
    1,046,956
    
    
    $
    1,230,106Net income from continuing operations (Pro-forma), net of tax
    
    $
    33,809
    
    
    $
    35,886Earnings per common share (Pro-forma)Basic
    
    $
    1.93
    
    
    $
    2.09Diluted
    
    $
    1.90
    
    
    $
    2.05
 74




---



##### Table of Contents



Fiscal 2006
     Fiscal 2005
   At January 25, 2005Current assets, primarily consisting of accounts receivable and inventories
    
    $
    71,141Property, plant and equipment
    
    
    12,649Other non-current assets
    
    
    18,779Intangible assets
    
    
    15,971Goodwill
    
    
    58,741Total assets acquired
    
    $
    177,281Current liabilities, primarily consisting of deferred revenue,
restructuring reserve and accrued expenses
    
    $
    61,128Other non-current liabilities, primarily consisting of restructuring reserve
    
    
    8,744Total liabilities acquired
    
    $
    69,872Net assets acquired
    
    $
    107,409
  At January 25, 2005Non-compete agreements
    
    $
    342Backlog
    
    
    3,930Customer relationships and contracts
    
    
    11,699Total intangible assets
    
    $
    15,971
  75




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##### Table of Contents



Fiscal Year Ended March 31,2005
    
    
    2004Revenue (Pro-forma)
    
    $
    716,853
    
    
    $
    746,261Net Income from continuing operations (Pro-forma), net of tax
    
    $
    22,451
    
    
    $
    32,732Earnings per common share (Pro-forma)Basic
    
    $
    1.29
    
    
    $
    1.80Diluted
    
    $
    1.26
    
    
    $
    1.74
  Note 11: Restructuring and Other Charges
 Fiscal 2007
 See
 Fiscal 2006
  Fiscal 2005
  76




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##### Table of Contents



EmployeeSeverance
    
    
    Facility Closures
    
    
    TotalBalance at March 31, 2005
    
    $
    2,789
    
    
    $
    13,809
    
    
    $
    16,598Restructuring charge
    
    
    3,473
    
    
    
    1,817
    
    
    
    5,290Acquisition adjustments (seeNote 10)
    
    
    66
    
    
    
    298
    
    
    
    364Asset write-downs
    
    
    --
    
    
    
    (636)
    
    
    
    (636)Cash expenditures
    
    
    (6,068)
    
    
    
    (4,850)
    
    
    
    (10,918)Balance at March 31, 2006
    
    $
    260
    
    
    $
    10,438
    
    
    $
    10,698Acquisition adjustments (seeNote 10)
    
    
    10,766
    
    
    
    16,268
    
    
    
    27,034Asset write-downs
    
    
    --
    
    
    
    (391)
    
    
    
    (391)Cash expenditures
    
    
    (8,020)
    
    
    
    (9,893)
    
    
    
    (17,913)Balance at March 31, 2007
    
    $
    3,006
    
    
    $
    16,422
    
    
    $
    19,428
  Note 12: Operating Leases
    Years Ending March 31,2008
    
    $
    30,5112009
    
    
    22,9692010
    
    
    13,6602011
    
    
    9,1252012
    
    
    6,041Thereafter through 2015
    
    
    3,561Total minimum lease payments
    
    $
    85,867
   77




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##### Table of Contents



Note 13: Income Taxes
  March 31,(As Restated)
    
    
    (As Restated)2007
    
    
    2006
    
    
    2005Domestic
    
    $
    27,523
    
    
    $
    29,186
    
    
    $
    30,595Foreign
    
    
    27,377
    
    
    
    16,805
    
    
    
    9,893Consolidated
    
    $
    54,900
    
    
    $
    45,991
    
    
    $
    40,488
  March 31,(As Restated)
    
    
    (As Restated)2007
    
    
    2006
    
    
    2005Current:Federal
    
    $
    12,598
    
    
    $
    11,506
    
    
    $
    12,784State
    
    
    1,363
    
    
    
    1,230
    
    
    
    1,118Foreign
    
    
    4,384
    
    
    
    5,038
    
    
    
    3,449Total current
    
    
    18,345
    
    
    
    17,774
    
    
    
    17,351Deferred
    
    
    946
    
    
    
    (2,553)
    
    
    
    (3,909)Total provision for income taxes
    
    $
    19,291
    
    
    $
    15,221
    
    
    $
    13,442
  March 31,(As Restated)
    
    
    (As Restated)2007
    
    
    2006
    
    
    2005Federal statutory tax rate
    
    
    35.0%
    
    
    
    35.0%
    
    
    
    35.0%Foreign taxes, net of foreign tax credits
    
    
    (1.3)
    
    
    
    --
    
    
    
    0.7Effect of permanent book / tax differences
    
    
    (0.1)
    
    
    
    2.7
    
    
    
    1.1State income taxes, net of federal benefit
    
    
    1.8
    
    
    
    (0.2)
    
    
    
    (1.5)Valuation allowance
    
    
    0.9
    
    
    
    (3.1)
    
    
    
    (3.0)Other, net
    
    
    (1.2)
    
    
    
    (1.3)
    
    
    
    0.9Effective tax rate
    
    
    35.1%
    
    
    
    33.1%
    
    
    
    33.2%
 78




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##### Table of Contents



March 31,(As Restated)2007
    
    
    2006Deferred Tax Liabilities:Tradename and trademarks
    
    $
    10,035
    
    
    $
    9,684Amortization of intangibles
    
    
    11,244
    
    
    
    8,940Unremitted earnings of foreign subsidiaries
    
    
    3,080
    
    
    
    2,109Basis of fixed assets
    
    
    2
    
    
    
    4,586Other prepaid items
    
    
    341
    
    
    
    22Gross deferred tax liabilities
    
    
    24,702
    
    
    
    25,341Deferred Tax Assets:Net operating losses
    
    
    17,172
    
    
    
    16,519Restructuring reserves
    
    
    13,533
    
    
    
    6,462Outsourced leases
    
    
    22
    
    
    
    6,403Basis of finished goods inventory
    
    
    9,515
    
    
    
    3,166Reserve for bad debts
    
    
    5,452
    
    
    
    2,796Miscellaneous accrued expenses
    
    
    3,452
    
    
    
    230Foreign tax credit carry-forwards
    
    
    2,569
    
    
    
    2,109Accrued employee costs
    
    
    767
    
    
    
    1,093Foreign exchange
    
    
    438
    
    
    
    719Unexercised stock options
    
    
    17,285
    
    
    
    15,678Gross deferred tax assets
    
    
    70,205
    
    
    
    55,175Valuation allowance
    
    
    (1,460)
    
    
    
    (952)Net deferred tax assets
    
    
    68,745
    
    
    
    54,223Net deferred tax assets/(liabilities)
    
    $
    44,043
    
    
    $
    28,882
       79




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##### Table of Contents



Note 14: Incentive Compensation Plans
 Performance Bonus
  Profit Sharing and Savings Plan (the plans)
  Stock-Based Compensation
    Stock-Based Compensation Expense, Pre-Tax(As PreviouslyFor the fiscal years ended March 31,
    
    Reported)
    
    
    Adjustment
    
    
    (As Restated)2006
    
    $
    --
    
    
    $
    11,045
    
    
    $
    11,0452005
    
    
    680
    
    
    
    5,178
    
    
    
    5,858
   2007
    
    
    2006
    
    
    2005Weighted-
    
    
    
    
    
    
    Weighted-Average
    
    
    
    
    
    
    Average
    
    
    
    
    
    
    Weighted-Exercise
    
    
    
    
    
    
    Exercise
    
    
    
    
    
    
    AveragePrice (per
    
    
    
    
    
    
    Price (per
    
    
    
    
    
    
    Exercise PriceShares in thousands
    
    Shares
    
    
    share)
    
    
    Shares
    
    
    share)
    
    
    Shares
    
    
    (per share)Outstanding at beginning of
period
    
    
    5,055
    
    
    $
    38.28
    
    
    
    4,780
    
    
    $
    37.14
    
    
    
    4,414
    
    
    $
    36.40Granted
    
    
    70
    
    
    
    39.12
    
    
    
    1,256
    
    
    
    38.51
    
    
    
    924
    
    
    
    34.86Exercised
    
    
    (435)
    
    
    
    34.42
    
    
    
    (753)
    
    
    
    30.95
    
    
    
    (381)
    
    
    
    20.78Forfeited or expired
    
    
    (69)
    
    
    
    38.71
    
    
    
    (228)
    
    
    
    39.84
    
    
    
    (177)
    
    
    
    42.01Outstanding at end of period
    
    
    4,621
    
    
    $
    38.66
    
    
    
    5,055
    
    
    $
    38.28
    
    
    
    4,780
    
    
    $
    37.14Exercisable at end of period
    
    
    4,130
    
    
    $
    39.12
    
    
    
    4,247
    
    
    $
    39.07
    
    
    
    3,143
    
    
    $
    37.33Weighted average fair value
of options granted during
the period using
Black-Scholes option
pricing model
    
    
    
    
    
    $
    17.88
    
    
    
    
    
    
    $
    22.79
    
    
    
    
    
    
    $
    21.03
 80




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##### Table of Contents



Number of
    
    
    Weighted-Shares (in
    
    
    Average Grant-000s)
    
    
    Date Fair ValueNon-vested as of 4/1/06
    
    
    808
    
    
    $
    19.59Granted
    
    
    65
    
    
    
    17.82Forfeited
    
    
    (366)
    
    
    
    19.69Vested
    
    
    (17)
    
    
    
    20.87Non-vested as of 3/31/07
    
    
    490
    
    
    
    19.29
  Fiscal 2007Expected life (in years)
    
    
    5.7Risk free interest rate
    
    
    4.18%Annual forfeiture rate
    
    
    1.53%Volatility
    
    
    45.47%Dividend yield
    
    
    0.60%
  Options Outstanding
    
    
    Options ExercisableWeighted
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    WeightedShares
    
    
    Average
    
    
    Weighted
    
    
    Average
    
    
    Shares
    
    
    Average
    
    
    Weighted
    
    
    AverageRange of
    
    Out-
    
    
    Remaining
    
    
    Average
    
    
    Intrinsic
    
    
    Exer-
    
    
    Remaining
    
    
    Average
    
    
    IntrinsicExercise
    
    standing
    
    
    Contractual
    
    
    Exercise
    
    
    Value
    
    
    cisable
    
    
    Contractual
    
    
    Exercise
    
    
    ValuePrices
    
    (000s)
    
    
    Life (Years)
    
    
    Price
    
    
    (000s)
    
    
    (000s)
    
    
    Life (Years)
    
    
    Price
    
    
    (000s)$19.95 - $26.60
    
    
    257
    
    
    
    1.3
    
    
    $
    21.85
    
    
    $
    3,715
    
    
    
    257
    
    
    
    1.3
    
    
    $
    21.85
    
    
    $
    3,715$26.60 - $33.25
    
    
    315
    
    
    
    1.9
    
    
    
    30.14
    
    
    
    1,936
    
    
    
    314
    
    
    
    1.9
    
    
    
    30.14
    
    
    
    1,936$33.25 - $39.90
    
    
    1,777
    
    
    
    8.0
    
    
    
    37.18
    
    
    
    1,678
    
    
    
    1,287
    
    
    
    8.2
    
    
    
    38.10
    
    
    
    754$39.90 - $46.55
    
    
    2,114
    
    
    
    4.6
    
    
    
    42.40
    
    
    
    
    
    
    
    2,114
    
    
    
    4.6
    
    
    
    42.40
    
    
    
    $46.55 - $53.20
    
    
    154
    
    
    
    2.6
    
    
    
    49.39
    
    
    
    
    
    
    
    154
    
    
    
    2.6
    
    
    
    49.39
    
    
    
    $53.20 - $59.85
    
    
    2
    
    
    
    2.8
    
    
    
    55.88
    
    
    
    
    
    
    
    2
    
    
    
    2.8
    
    
    
    55.88
    
    
    
    $59.85 - $66.50
    
    
    2
    
    
    
    2.7
    
    
    
    63.22
    
    
    
    
    
    
    
    2
    
    
    
    2.7
    
    
    
    63.22
    
    
    
    $19.95 - $66.50
    
    
    4,621
    
    
    
    5.5
    
    
    $
    38.66
    
    
    $
    7,329
    
    
    
    4,130
    
    
    
    5.2
    
    
    $
    39.12
    
    
    $
    6,405
 i.e.
 Pro forma Information
  81




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##### Table of Contents



Years Ended March 31,(As Restated)
    
    
    (As Restated)2006
    
    
    2005Net income (Loss) - As reported
    
    $
    30,770
    
    
    $
    27,046Plus: Stock-based compensation expense included in reported net income, net of related tax
    
    
    11,045
    
    
    
    5,623Less: Stock-based compensation expense determined by the fair value method for all
awards, net of related tax
    
    
    (43,420)
    
    
    
    (21,724)Net Income (Loss) - Pro-forma
    
    $
    (1,605)
    
    
    $
    10,945Earnings per common shareBasic  as reported
    
    $
    1.79
    
    
    $
    1.55Basic  pro-forma
    
    $
    (0.09)
    
    
    $
    0.63Diluted  as reported
    
    $
    1.75
    
    
    $
    1.52Diluted  pro-forma
    
    $
    (0.09)
    
    
    $
    0.61
    Fiscal Year ended March 31, 2006Aspreviouslyreported
    
    
    Adjustment
    
    
    As RestatedNet income (Loss) - As reported
    
    $
    37,358
    
    
    $
    (6,588)
    
    
    $
    30,770Plus: Stock-based compensation
expense included in reported
net income, net of related tax
    
    
    --
    
    
    
    11,045
    
    
    
    11,045Less: Stock-based compensation
expense determined by the fair
value method for all awards,
net of related tax
    
    
    (23,972)
    
    
    
    (19,448)
    
    
    
    (43,420)Net Income (Loss) - Pro-forma
    
    $
    13,386
    
    
    $
    (14,991)
    
    
    $
    (1,605)Earnings per common shareBasic  as reported
    
    $
    2.18
    
    
    $
    (0.39)
    
    
    $
    1.79Basic  pro-forma
    
    $
    0.78
    
    
    $
    (0.87)
    
    
    $
    (0.09)Diluted  as reported
    
    $
    2.13
    
    
    $
    (0.38)
    
    
    $
    1.75Diluted  pro-forma
    
    $
    0.76
    
    
    $
    (0.85)
    
    
    $
    (0.09)
 82




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##### Table of Contents



Fiscal Year ended March 31, 2005Aspreviouslyreported
    
    
    Adjustment
    
    
    As RestatedNet income (Loss) - As reported
    
    $
    29,912
    
    
    $
    (2,866)
    
    
    $
    27,046Plus: Stock-based compensation
expense included in reported
net income, net of related tax
    
    
    445
    
    
    
    5,178
    
    
    
    5,623Less: Stock-based compensation
expense determined by the fair
value method for all awards,
net of related tax
    
    
    (9,492)
    
    
    
    (12,232)
    
    
    
    (21,724)Net Income (Loss) - Pro-forma
    
    $
    20,865
    
    
    $
    (9,920)
    
    
    $
    10,945Earnings per common shareBasic  as reported
    
    $
    1.72
    
    
    $
    (0.17)
    
    
    $
    1.55Basic  pro-forma
    
    $
    1.20
    
    
    $
    (0.57)
    
    
    $
    0.63Diluted  as reported
    
    $
    1.68
    
    
    $
    (0.16)
    
    
    $
    1.52Diluted  pro-forma
    
    $
    1.17
    
    
    $
    (0.56)
    
    
    $
    0.61
   Year Ended March 31,2006
    
    
    2005Expected life (in years)
    
    
    5.6
    
    
    
    5.1Risk free interest rate
    
    
    4.2%
    
    
    
    3.5%Volatility
    
    
    49.0%
    
    
    
    60.0%Dividend yield
    
    
    0.6%
    
    
    
    0.6%
 Note 15: Earnings Per Share
  March 31,(As Restated)
    
    
    (As Restated)2007
    
    
    2006
    
    
    2005Net income, as reported
    
    $
    35,609
    
    
    $
    30,770
    
    
    $
    27,046Weighted average common shares outstanding (basic)
    
    
    17,512
    
    
    
    17,164
    
    
    
    17,411Effect of dilutive securities from employee stock options
    
    
    296
    
    
    
    380
    
    
    
    434Weighted average common shares outstanding (diluted)
    
    
    17,808
    
    
    
    17,544
    
    
    
    17,845Basic earnings per common share
    
    $
    2.03
    
    
    $
    1.79
    
    
    $
    1.55Dilutive earnings per common share
    
    $
    2.00
    
    
    $
    1.75
    
    
    $
    1.52
  Note 16: Repurchase of Common Stock
 Fiscal 2007
 Fiscal 2006
 Fiscal 2005
 83




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##### Table of Contents



Note 17: Commitments and Contingencies
 Regulatory Matters
  See
   Litigation Matters
 In re Black Box Corporation Derivative
Litigation
   Product Warranties
  84




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##### Table of Contents



Note 18: Segment Reporting
   March 31,(As Restated)
    
    
    (As Restated)2007
    
    
    2006
    
    
    2005North AmericaRevenues
    
    $
    850,088
    
    
    $
    564,700
    
    
    $
    355,013Operating income
    
    
    49,481
    
    
    
    42,505
    
    
    
    21,620Depreciation
    
    
    11,742
    
    
    
    8,012
    
    
    
    5,144Amortization
    
    
    10,156
    
    
    
    4,472
    
    
    
    878Segment assets (as of March 31)
    
    
    1,007,695
    
    
    
    761,424
    
    
    
    719,936EuropeRevenues
    
    $
    129,278
    
    
    $
    120,051
    
    
    $
    142,838Operating income
    
    
    16,442
    
    
    
    5,518
    
    
    
    13,639Depreciation
    
    
    498
    
    
    
    671
    
    
    
    1,213Amortization
    
    
    91
    
    
    
    491
    
    
    
    398Segment assets (as of March 31)
    
    
    139,531
    
    
    
    116,717
    
    
    
    134,982All OtherRevenues
    
    $
    36,944
    
    
    $
    36,584
    
    
    $
    37,225Operating income
    
    
    7,426
    
    
    
    7,127
    
    
    
    8,099Depreciation
    
    
    85
    
    
    
    248
    
    
    
    266Amortization
    
    
    38
    
    
    
    36
    
    
    
    56Segment assets (as of March 31)
    
    
    17,318
    
    
    
    16,416
    
    
    
    15,357
  March 31,(As Restated)
    
    
    (As Restated)2007
    
    
    2006
    
    
    2005Segment assets for North America, Europe and All Other
    
    $
    1,164,544
    
    
    $
    894,557
    
    
    $
    870,275Corporate eliminations
    
    
    (74,453)
    
    
    
    (79,145)
    
    
    
    (83,211)Total consolidated assets
    
    $
    1,090,091
    
    
    $
    815,412
    
    
    $
    787,064
  March 31,2007
    
    
    2006
    
    
    2005Data ServicesRevenues
    
    $
    182,129
    
    
    $
    196,585
    
    
    $
    200,935Gross Profit
    
    
    55,598
    
    
    
    57,068
    
    
    
    59,354Voice ServicesRevenues
    
    $
    611,278
    
    
    $
    310,804
    
    
    $
    106,540Gross Profit
    
    
    209,268
    
    
    
    119,556
    
    
    
    36,255Hotline ServicesRevenues
    
    $
    222,903
    
    
    $
    213,946
    
    
    $
    227,601Gross Profit
    
    
    109,123
    
    
    
    105,726
    
    
    
    119,320
  85




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##### Table of Contents



Note 19: Quarterly Data (Unaudited)
  Fiscal Year 2007 (Unaudited)(As Restated)
    
    
    (As Restated)1Q07
    
    
    2Q07
    
    
    3Q07
    
    
    4Q07
    
    
    FY07RevenuesHotline products
    
    $
    52,225
    
    
    $
    55,063
    
    
    $
    57,770
    
    
    $
    57,845
    
    
    $
    222,903On-Site services
    
    
    178,170
    
    
    
    216,262
    
    
    
    207,036
    
    
    
    191,939
    
    
    
    793,407Total
    
    
    230,395
    
    
    
    271,325
    
    
    
    264,806
    
    
    
    249,784
    
    
    
    1,016,310Cost of salesHotline products
    
    
    25,461
    
    
    
    27,847
    
    
    
    29,887
    
    
    
    30,585
    
    
    
    113,780On-Site services
    
    
    119,090
    
    
    
    144,442
    
    
    
    138,234
    
    
    
    126,775
    
    
    
    528,541Total
    
    
    144,551
    
    
    
    172,289
    
    
    
    168,121
    
    
    
    157,360
    
    
    
    642,321Gross profit
    
    
    85,844
    
    
    
    99,036
    
    
    
    96,685
    
    
    
    92,424
    
    
    
    373,989Selling, general &
administrative expenses
    
    
    70,202
    
    
    
    73,599
    
    
    
    73,940
    
    
    
    72,614
    
    
    
    290,355Restructuring and other charges
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --Intangibles Amortization
    
    
    1,506
    
    
    
    1,931
    
    
    
    2,677
    
    
    
    4,171
    
    
    
    10,285Operating income
    
    
    14,136
    
    
    
    23,506
    
    
    
    20,068
    
    
    
    15,639
    
    
    
    73,349Interest expense (income), net
    
    
    3,640
    
    
    
    5,521
    
    
    
    4,061
    
    
    
    5,185
    
    
    
    18,407Other expenses (income), net
    
    
    115
    
    
    
    72
    
    
    
    (122)
    
    
    
    (23)
    
    
    
    42Income before provision for
income taxes
    
    
    10,381
    
    
    
    17,913
    
    
    
    16,129
    
    
    
    10,477
    
    
    
    54,900Provision for income taxes
    
    
    3,568
    
    
    
    6,238
    
    
    
    5,636
    
    
    
    3,849
    
    
    
    19,291Net income
    
    $
    6,813
    
    
    $
    11,675
    
    
    $
    10,493
    
    
    $
    6,628
    
    
    $
    35,609Earnings per common share:Basic
    
    $
    0.39
    
    
    $
    0.67
    
    
    $
    0.60
    
    
    $
    0.38
    
    
    $
    2.03Diluted
    
    $
    0.37
    
    
    $
    0.66
    
    
    $
    0.59
    
    
    $
    0.37
    
    
    $
    2.00
 86




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##### Table of Contents



Fiscal Year 2006 (Unaudited)(As Restated)
    
    
    (As Restated)
    
    
    (As Restated)
    
    
    (As Restated)
    
    
    (As Restated)1Q06
    
    
    2Q06
    
    
    3Q06
    
    
    4Q06
    
    
    FY06RevenuesHotline products
    
    $
    53,452
    
    
    $
    54,056
    
    
    $
    52,771
    
    
    $
    53,667
    
    
    $
    213,946On-Site services
    
    
    125,830
    
    
    
    130,994
    
    
    
    129,364
    
    
    
    121,201
    
    
    
    507,389Total
    
    
    179,282
    
    
    
    185,050
    
    
    
    182,135
    
    
    
    174,868
    
    
    
    721,335Cost of salesHotline products
    
    
    25,874
    
    
    
    26,829
    
    
    
    26,308
    
    
    
    29,209
    
    
    
    108,220On-Site services
    
    
    82,468
    
    
    
    84,339
    
    
    
    82,425
    
    
    
    81,533
    
    
    
    330,765Total
    
    
    108,342
    
    
    
    111,168
    
    
    
    108,733
    
    
    
    110,742
    
    
    
    438,985Gross profit
    
    
    70,940
    
    
    
    73,882
    
    
    
    73,402
    
    
    
    64,126
    
    
    
    282,350Selling, general &
administrative expenses
    
    
    52,040
    
    
    
    51,773
    
    
    
    52,872
    
    
    
    60,226
    
    
    
    216,911Restructuring and other charges
    
    
    5,290
    
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    5,290Intangibles Amortization
    
    
    1,558
    
    
    
    1,328
    
    
    
    1,349
    
    
    
    764
    
    
    
    4,999Operating income
    
    
    12,052
    
    
    
    20,781
    
    
    
    19,181
    
    
    
    3,136
    
    
    
    55,150Interest expense (income), net
    
    
    1,959
    
    
    
    2,330
    
    
    
    2,397
    
    
    
    2,437
    
    
    
    9,123Other expenses (income), net
    
    
    (75)
    
    
    
    40
    
    
    
    114
    
    
    
    (43)
    
    
    
    36Income before provision for
income taxes
    
    
    10,168
    
    
    
    18,411
    
    
    
    16,670
    
    
    
    742
    
    
    
    45,991Provision for income taxes
    
    
    3,452
    
    
    
    6,296
    
    
    
    5,631
    
    
    
    (158)
    
    
    
    15,221Net income
    
    $
    6,716
    
    
    $
    12,115
    
    
    $
    11,039
    
    
    $
    900
    
    
    $
    30,770Earnings per common share:Basic
    
    $
    0.40
    
    
    $
    0.71
    
    
    $
    0.64
    
    
    $
    0.05
    
    
    $
    1.79Diluted
    
    $
    0.39
    
    
    $
    0.70
    
    
    $
    0.62
    
    
    $
    0.05
    
    
    $
    1.75
   87




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##### Table of Contents



Restatement Impact on the Quarterly (Unaudited) Consolidated Statements of Income
  Three Month Period Ended September 30, 2006 (Unaudited)As PreviouslyIn thousands, except per share amounts
    
    Reported
    
    
    Adjustment
    
    
    As RestatedRevenuesHotline products
    
    $
    55,063
    
    
    $
    --
    
    
    $
    55,063On-Site services
    
    
    216,262
    
    
    
    --
    
    
    
    216,262Total
    
    
    271,325
    
    
    
    --
    
    
    
    271,325Cost of salesHotline products
    
    
    27,847
    
    
    
    --
    
    
    
    27,847On-Site services
    
    
    144,442
    
    
    
    --
    
    
    
    144,442Total
    
    
    172,289
    
    
    
    --
    
    
    
    172,289Gross profit
    
    
    99,036
    
    
    
    --
    
    
    
    99,036Selling, general & administrative expenses
    
    
    72,784
    
    
    
    815
    
    
    
    73,599Restructuring and other charges
    
    
    --
    
    
    
    --
    
    
    
    --Intangibles amortization
    
    
    1,931
    
    
    
    --
    
    
    
    1,931Operating income
    
    
    24,321
    
    
    
    (815
    )
    
    
    23,506Interest expense (income), net
    
    
    4,126
    
    
    
    1,395
    
    
    
    5,521Other expenses (income), net
    
    
    72
    
    
    
    --
    
    
    
    72Income before provision for income taxes
    
    
    20,123
    
    
    
    (2,210
    )
    
    
    17,913Provision for income taxes
    
    
    7,044
    
    
    
    (806
    )
    
    
    6,238Net income
    
    $
    13,079
    
    
    $
    (1,404
    )
    
    $
    11,675Earnings per common share:Basic
    
    $
    0.75
    
    
    $
    (0.08
    )
    
    $
    0.67Diluted
    
    $
    0.74
    
    
    $
    (0.08
    )
    
    $
    0.66
 88




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##### Table of Contents



Three Month Period Ended June 30, 2006 (Unaudited)As PreviouslyIn thousands, except per share amounts
    
    Reported
    
    
    Adjustment
    
    
    As RestatedRevenuesHotline products
    
    $
    52,225
    
    
    $
    --
    
    
    $
    52,225On-Site services
    
    
    178,170
    
    
    
    --
    
    
    
    178,170Total
    
    
    230,395
    
    
    
    --
    
    
    
    230,395Cost of salesHotline products
    
    
    25,461
    
    
    
    --
    
    
    
    25,461On-Site services
    
    
    119,090
    
    
    
    --
    
    
    
    119,090Total
    
    
    144,551
    
    
    
    --
    
    
    
    144,551Gross profit
    
    
    85,844
    
    
    
    --
    
    
    
    85,844Selling, general & administrative expenses
    
    
    68,573
    
    
    
    1,629
    
    
    
    70,202Restructuring and other charges
    
    
    --
    
    
    
    --
    
    
    
    --Intangibles amortization
    
    
    1,506
    
    
    
    --
    
    
    
    1,506Operating income
    
    
    15,765
    
    
    
    (1,629
    )
    
    
    14,136Interest expense (income), net
    
    
    3,640
    
    
    
    --
    
    
    
    3,640Other expenses (income), net
    
    
    115
    
    
    
    --
    
    
    
    115Income before provision for income taxes
    
    
    12,010
    
    
    
    (1,629
    )
    
    
    10,381Provision for income taxes
    
    
    4,203
    
    
    
    (635
    )
    
    
    3,568Net income
    
    $
    7,807
    
    
    $
    (994
    )
    
    $
    6,813Earnings per common share:Basic
    
    $
    0.44
    
    
    $
    (0.05
    )
    
    $
    0.39Diluted
    
    $
    0.43
    
    
    $
    (0.06
    )
    
    $
    0.37
 89




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##### Table of Contents



Three Month Period Ended March 31, 2006 (Unaudited)As PreviouslyIn thousands, except per share amounts
    
    Reported
    
    
    Adjustment
    
    
    As RestatedRevenuesHotline products
    
    $
    53,667
    
    
    $
    --
    
    
    $
    53,667On-Site services
    
    
    121,201
    
    
    
    --
    
    
    
    121,201Total
    
    
    174,868
    
    
    
    --
    
    
    
    174,868Cost of salesHotline products
    
    
    29,209
    
    
    
    --
    
    
    
    29,209On-Site services
    
    
    81,533
    
    
    
    --
    
    
    
    81,533Total
    
    
    110,742
    
    
    
    --
    
    
    
    110,742Gross profit
    
    
    64,126
    
    
    
    --
    
    
    
    64,126Selling, general & administrative expenses
    
    
    53,858
    
    
    
    6,368
    
    
    
    60,226Restructuring and other charges
    
    
    --
    
    
    
    --
    
    
    
    --Intangibles amortization
    
    
    764
    
    
    
    --
    
    
    
    764Operating income
    
    
    9,504
    
    
    
    (6,368
    )
    
    
    3,136Interest expense (income), net
    
    
    2,437
    
    
    
    --
    
    
    
    2,437Other expenses (income), net
    
    
    (43
    )
    
    
    --
    
    
    
    (43
    )Income before provision for income taxes
    
    
    7,110
    
    
    
    (6,368
    )
    
    
    742Provision for income taxes
    
    
    2,454
    
    
    
    (2,612
    )
    
    
    (158
    )Net income
    
    $
    4,656
    
    
    $
    (3,756
    )
    
    $
    900Earnings per common share:Basic
    
    $
    0.26
    
    
    $
    (0.21
    )
    
    $
    0.05Diluted
    
    $
    0.26
    
    
    $
    (0.21
    )
    
    $
    0.05
 90




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##### Table of Contents



Three Month Period Ended December 31, 2005 (Unaudited)As PreviouslyIn thousands, except per share amounts
    
    Reported
    
    
    Adjustment
    
    
    As RestatedRevenuesHotline products
    
    $
    52,771
    
    
    $
    --
    
    
    $
    52,771On-Site services
    
    
    129,364
    
    
    
    --
    
    
    
    129,364Total
    
    
    182,135
    
    
    
    --
    
    
    
    182,135Cost of salesHotline products
    
    
    26,308
    
    
    
    --
    
    
    
    26,308On-Site services
    
    
    82,425
    
    
    
    --
    
    
    
    82,425Total
    
    
    108,733
    
    
    
    --
    
    
    
    108,733Gross profit
    
    
    73,402
    
    
    
    --
    
    
    
    73,402Selling, general & administrative expenses
    
    
    50,441
    
    
    
    2,431
    
    
    
    52,872Restructuring and other charges
    
    
    --
    
    
    
    --
    
    
    
    --Intangibles amortization
    
    
    1,349
    
    
    
    --
    
    
    
    1,349Operating income
    
    
    21,612
    
    
    
    (2,431
    )
    
    
    19,181Interest expense (income), net
    
    
    2,397
    
    
    
    --
    
    
    
    2,397Other expenses (income), net
    
    
    114
    
    
    
    --
    
    
    
    114Income before provision for income taxes
    
    
    19,101
    
    
    
    (2,431
    )
    
    
    16,670Provision for income taxes
    
    
    6,590
    
    
    
    (959
    )
    
    
    5,631Net income
    
    $
    12,511
    
    
    $
    (1,472
    )
    
    $
    11,039Earnings per common share:Basic
    
    $
    0.72
    
    
    $
    (0.08
    )
    
    $
    0.64Diluted
    
    $
    0.70
    
    
    $
    (0.08
    )
    
    $
    0.62
 91




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##### Table of Contents



Three Month Period Ended October 1, 2005 (Unaudited)As PreviouslyIn thousands, except per share amounts
    
    Reported
    
    
    Adjustment
    
    
    As RestatedRevenuesHotline products
    
    $
    54,056
    
    
    $
    --
    
    
    $
    54,056On-Site services
    
    
    130,994
    
    
    
    --
    
    
    
    130,994Total
    
    
    185,050
    
    
    
    --
    
    
    
    185,050Cost of salesHotline products
    
    
    26,829
    
    
    
    --
    
    
    
    26,829On-Site services
    
    
    84,339
    
    
    
    --
    
    
    
    84,339Total
    
    
    111,168
    
    
    
    --
    
    
    
    111,168Gross profit
    
    
    73,882
    
    
    
    --
    
    
    
    73,882Selling, general & administrative expenses
    
    
    50,647
    
    
    
    1,126
    
    
    
    51,773Restructuring and other charges
    
    
    --
    
    
    
    --
    
    
    
    --Intangibles amortization
    
    
    1,328
    
    
    
    --
    
    
    
    1,328Operating income
    
    
    21,907
    
    
    
    (1,126
    )
    
    
    20,781Interest expense (income), net
    
    
    2,330
    
    
    
    --
    
    
    
    2,330Other expenses (income), net
    
    
    40
    
    
    
    --
    
    
    
    40Income before provision for income taxes
    
    
    19,537
    
    
    
    (1,126
    )
    
    
    18,411Provision for income taxes
    
    
    6,740
    
    
    
    (444
    )
    
    
    6,296Net income
    
    $
    12,797
    
    
    $
    (682
    )
    
    $
    12,115Earnings per common share:Basic
    
    $
    0.75
    
    
    $
    (0.04
    )
    
    $
    0.71Diluted
    
    $
    0.74
    
    
    $
    (0.04
    )
    
    $
    0.70
 92




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##### Table of Contents



Three Month Period Ended July 2, 2005 (Unaudited)As PreviouslyIn thousands, except per share amounts
    
    Reported
    
    
    Adjustment
    
    
    As RestatedRevenuesHotline products
    
    $
    53,452
    
    
    $
    --
    
    
    $
    53,452On-Site services
    
    
    125,830
    
    
    
    --
    
    
    
    125,830Total
    
    
    179,282
    
    
    
    --
    
    
    
    179,282Cost of salesHotline products
    
    
    25,874
    
    
    
    --
    
    
    
    25,874On-Site services
    
    
    82,468
    
    
    
    --
    
    
    
    82,468Total
    
    
    108,342
    
    
    
    --
    
    
    
    108,342Gross profit
    
    
    70,940
    
    
    
    --
    
    
    
    70,940Selling, general & administrative expenses
    
    
    50,920
    
    
    
    1,120
    
    
    
    52,040Restructuring and other charges
    
    
    5,290
    
    
    
    --
    
    
    
    5,290Intangibles amortization
    
    
    1,558
    
    
    
    --
    
    
    
    1,558Operating income
    
    
    13,172
    
    
    
    (1,120
    )
    
    
    12,052Interest expense (income), net
    
    
    1,959
    
    
    
    --
    
    
    
    1,959Other expenses (income), net
    
    
    (75
    )
    
    
    --
    
    
    
    (75
    )Income before provision for income taxes
    
    
    11,288
    
    
    
    (1,120
    )
    
    
    10,168Provision for income taxes
    
    
    3,894
    
    
    
    (442
    )
    
    
    3,452Net income
    
    $
    7,394
    
    
    $

    (678
    )
    
    $
    6,716Earnings per common share:Basic
    
    $
    0.44
    
    
    $
    (0.04
    )
    
    $
    0.40Diluted
    
    $
    0.43
    
    
    $
    (0.04
    )
    
    $
    0.39
 93




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##### Table of Contents



(As Restated)
    
    
    (As Restated)June 30, 2006
    
    
    September 30, 2006
    
    
    December 30, 2006
    
    
    March 31,(Unaudited)
    
    
    (Unaudited)
    
    
    (Unaudited)
    
    
    2007AssetsCash and cash equivalents
    
    $
    14,360
    
    
    $
    15,758
    
    
    $
    15,362
    
    
    $
    17,157Accounts receivable, net
    
    
    172,315
    
    
    
    185,333
    
    
    
    184,403
    
    
    
    161,733Inventories, net
    
    
    68,243
    
    
    
    71,877
    
    
    
    74,077
    
    
    
    72,807Costs / estimated earnings in
excess of billings on uncompleted
contracts
    
    
    55,400
    
    
    
    56,553
    
    
    
    59,200
    
    
    
    61,001Deferred tax asset
    
    
    8,873
    
    
    
    9,489
    
    
    
    10,456
    
    
    
    10,562Prepaid and other current assets
    
    
    28,662
    
    
    
    27,606
    
    
    
    26,045
    
    
    
    20,495Total current assets
    
    
    347,853
    
    
    
    366,616
    
    
    
    369,543
    
    
    
    343,755Property, plant and equipment, net
    
    
    39,029
    
    
    
    41,595
    
    
    
    39,252
    
    
    
    39,051Goodwill, net
    
    
    593,188
    
    
    
    586,273
    
    
    
    588,556
    
    
    
    568,647Intangibles:Customer relationships, net
    
    
    54,036
    
    
    
    53,996
    
    
    
    55,962
    
    
    
    68,016Other intangibles, net
    
    
    35,471
    
    
    
    34,799
    
    
    
    36,493
    
    
    
    33,258Deferred tax asset
    
    
    19,065
    
    
    
    18,526
    
    
    
    17,920
    
    
    
    33,481Other assets
    
    
    4,969
    
    
    
    4,343
    
    
    
    4,192
    
    
    
    3,883Total assets
    
    $
    1,093,611
    
    
    $
    1,106,148
    
    
    $
    1,111,918
    
    
    $
    1,090,091LiabilitiesAccounts payable
    
    $
    73,753
    
    
    $
    87,127
    
    
    $
    75,982
    
    
    $
    74,727Accrued compensation and benefits
    
    
    25,644
    
    
    
    20,656
    
    
    
    23,443
    
    
    
    21,811Deferred revenue
    
    
    53,365
    
    
    
    51,120
    
    
    
    48,998
    
    
    
    35,630Billings in excess of costs /
estimated earnings on uncompleted
contracts
    
    
    15,483
    
    
    
    20,571
    
    
    
    21,444
    
    
    
    19,027Current maturities of long-term
debt
    
    
    704
    
    
    
    608
    
    
    
    587
    
    
    
    686Income taxes
    
    
    9,887
    
    
    
    11,818
    
    
    
    60,428
    
    
    
    13,430Other liabilities
    
    
    68,344
    
    
    
    64,780
    
    
    
    11,782
    
    
    
    61,385Total current liabilities
    
    
    247,180
    
    
    
    256,680
    
    
    
    242,664
    
    
    
    226,696Long-term debt
    
    
    243,886
    
    
    
    251,945
    
    
    
    253,938
    
    
    
    239,928Other liabilities
    
    
    31,509
    
    
    
    27,708
    
    
    
    26,754
    
    
    
    23,771Total liabilities
    
    
    522,575
    
    
    
    536,333
    
    
    
    523,356
    
    
    
    490,395Stockholders equityPreferred Stock
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --Common Stock
    
    
    25
    
    
    
    25
    
    
    
    25
    
    
    
    25Additional paid-in capital
    
    
    424,141
    
    
    
    430,061
    
    
    
    437,096
    
    
    
    441,283Treasury stock
    
    
    (296,824
    )
    
    
    (314,411
    )
    
    
    (317,030
    )
    
    
    (317,033
    )Accumulated other comprehensive
income
    
    
    19,329
    
    
    
    19,141
    
    
    
    24,025
    
    
    
    25,399Retained earnings
    
    
    424,365
    
    
    
    434,999
    
    
    
    444,446
    
    
    
    450,022Total stockholders equity
    
    
    571,036
    
    
    
    569,815
    
    
    
    588,562
    
    
    
    599,696Total liabilities and stockholders
equity
    
    $
    1,093,611
    
    
    $
    1,106,148
    
    
    $
    1,111,918
    
    
    $
    1,090,091
 94




---



##### Table of Contents



(As Restated)
    
    
    (As Restated)
    
    
    (As Restated)July 2, 2005
    
    
    October 1, 2005
    
    
    December 31, 2005
    
    
    (As Restated)(Unaudited)
    
    
    (Unaudited)
    
    
    (Unaudited)
    
    
    March 31, 2006AssetsCash and cash equivalents
    
    $
    11,008
    
    
    $
    11,925
    
    
    $
    12,143
    
    
    $
    11,207Accounts receivable, net
    
    
    115,141
    
    
    
    131,757
    
    
    
    125,632
    
    
    
    116,713Inventories, net
    
    
    52,454
    
    
    
    53,154
    
    
    
    53,448
    
    
    
    53,926Costs / estimated earnings in excess of
billings on uncompleted contracts
    
    
    29,770
    
    
    
    24,052
    
    
    
    28,093
    
    
    
    23,803Deferred tax asset
    
    
    10,031
    
    
    
    10,496
    
    
    
    11,084
    
    
    
    8,973Prepaid and other current assets
    
    
    17,877
    
    
    
    19,228
    
    
    
    18,483
    
    
    
    16,502Total current assets
    
    
    236,281
    
    
    
    250,612
    
    
    
    248,883
    
    
    
    231,124Property, plant and equipment, net
    
    
    36,173
    
    
    
    36,330
    
    
    
    36,117
    
    
    
    35,124Goodwill, net
    
    
    448,993
    
    
    
    457,362
    
    
    
    468,871
    
    
    
    468,724Intangibles:Customer relationships, net
    
    
    14,257
    
    
    
    19,807
    
    
    
    24,333
    
    
    
    24,657Other intangibles, net
    
    
    32,572
    
    
    
    31,596
    
    
    
    31,240
    
    
    
    30,783Deferred tax asset
    
    
    18,382
    
    
    
    18,642
    
    
    
    17,719
    
    
    
    19,909Other assets
    
    
    4,728
    
    
    
    4,548
    
    
    
    4,480
    
    
    
    5,091Total assets
    
    $
    791,386
    
    
    $
    818,897
    
    
    $
    831,643
    
    
    $
    815,412LiabilitiesAccounts payable
    
    $
    32,647
    
    
    $
    38,301
    
    
    $
    39,487
    
    
    $
    44,943Accrued compensation and benefits
    
    
    13,833
    
    
    
    11,382
    
    
    
    12,650
    
    
    
    13,954Deferred revenue
    
    
    22,401
    
    
    
    21,931
    
    
    
    21,473
    
    
    
    22,211Billings in excess of costs / estimated
earnings on uncompleted contracts
    
    
    10,821
    
    
    
    11,472
    
    
    
    11,604
    
    
    
    8,648Current maturities of long-term debt
    
    
    981
    
    
    
    576
    
    
    
    716
    
    
    
    1,049Income taxes
    
    
    11,763
    
    
    
    13,331
    
    
    
    12,600
    
    
    
    9,511Other liabilities
    
    
    40,472
    
    
    
    44,018
    
    
    
    44,933
    
    
    
    31,139Total current liabilities
    
    
    132,918
    
    
    
    141,011
    
    
    
    143,463
    
    
    
    131,455Long-term debt
    
    
    150,903
    
    
    
    149,308
    
    
    
    141,304
    
    
    
    122,673Other liabilities
    
    
    9,107
    
    
    
    8,629
    
    
    
    8,142
    
    
    
    8,293Total liabilities
    
    
    292,928
    
    
    
    298,948
    
    
    
    292,909
    
    
    
    262,421Stockholders equityPreferred Stock
    
    
    --
    
    
    
    --
    
    
    
    --
    
    
    
    --Common Stock
    
    
    24
    
    
    
    24
    
    
    
    24
    
    
    
    25Additional paid-in capital
    
    
    384,598
    
    
    
    394,219
    
    
    
    405,618
    
    
    
    418,141Treasury stock
    
    
    (296,797
    )
    
    
    (296,807
    )
    
    
    (296,811
    )
    
    
    (296,824
    )Accumulated other comprehensive income
    
    
    12,946
    
    
    
    13,739
    
    
    
    11,135
    
    
    
    13,036Retained earnings
    
    
    397,687
    
    
    
    408,774
    
    
    
    418,768
    
    
    
    418,613Total stockholders equity
    
    
    498,458
    
    
    
    519,949
    
    
    
    538,734
    
    
    
    552,991Total liabilities and stockholders equity
    
    $
    791,386
    
    
    $
    818,897
    
    
    $
    831,643
    
    
    $
    815,412
 95




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Restatement Impact on the Quarterly (Unaudited) Consolidated Balance Sheets
  September 30, 2006 (Unaudited)As PreviouslyReported
    
    
    Adjustment
    
    
    As RestatedAssetsCash and cash equivalents
    
    $
    15,758
    
    
    $
    --
    
    
    $
    15,758Accounts receivable, net
    
    
    185,333
    
    
    
    --
    
    
    
    185,333Inventories, net
    
    
    71,877
    
    
    
    --
    
    
    
    71,877Costs / estimated earnings in excess of
billings on uncompleted contracts
    
    
    56,553
    
    
    
    --
    
    
    
    56,553Deferred tax asset
    
    
    9,489
    
    
    
    --
    
    
    
    9,489Prepaid and other current assets
    
    
    27,606
    
    
    
    --
    
    
    
    27,606Total current assets
    
    
    366,616
    
    
    
    --
    
    
    
    366,616Property, plant and equipment, net
    
    
    41,595
    
    
    
    --
    
    
    
    41,595Goodwill, net
    
    
    586,273
    
    
    
    --
    
    
    
    586,273Intangibles:Customer relationships, net
    
    
    53,996
    
    
    
    --
    
    
    
    53,996Other intangibles, net
    
    
    34,799
    
    
    
    --
    
    
    
    34,799Deferred tax asset
    
    
    2,654
    
    
    
    15,872
    
    
    
    18,526Other assets
    
    
    4,343
    
    
    
    --
    
    
    
    4,343Total assets
    
    $
    1,090,276
    
    
    $
    15,872
    
    
    $
    1,106,148LiabilitiesAccounts payable
    
    $
    87,127
    
    
    $
    --
    
    
    $
    87,127Accrued compensation and benefits
    
    
    20,656
    
    
    
    --
    
    
    
    20,656Deferred revenue
    
    
    51,120
    
    
    
    --
    
    
    
    51,120Billings in excess of costs / estimated
earnings on uncompleted contracts
    
    
    20,571
    
    
    
    --
    
    
    
    20,571Current maturities of long-term debt
    
    
    608
    
    
    
    --
    
    
    
    608Income taxes
    
    
    8,719
    
    
    
    3,099
    
    
    
    11,818Other liabilities
    
    
    64,780
    
    
    
    --
    
    
    
    64,780Total current liabilities
    
    
    253,581
    
    
    
    3,099
    
    
    
    256,680Long-term debt
    
    
    251,945
    
    
    
    --
    
    
    
    251,945Other liabilities
    
    
    27,708
    
    
    
    --
    
    
    
    27,708Total liabilities
    
    
    533,234
    
    
    
    3,099
    
    
    
    536,333Stockholders equityPreferred Stock
    
    
    --
    
    
    
    --
    
    
    
    --Common Stock
    
    
    25
    
    
    
    --
    
    
    
    25Additional paid-in capital
    
    
    373,045
    
    
    
    57,016
    
    
    
    430,061Treasury stock
    
    
    (314,411
    )
    
    
    --
    
    
    
    (314,411
    )Accumulated other comprehensive income
    
    
    17,746
    
    
    
    1,395
    
    
    
    19,141Retained earnings
    
    
    480,637
    
    
    
    (45,638
    )
    
    
    434,999Total stockholders equity
    
    
    557,042
    
    
    
    12,773
    
    
    
    569,815Total liabilities and stockholders equity
    
    $
    1,090,276
    
    
    $
    15,872
    
    
    $
    1,106,148
 96




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##### Table of Contents



June 30, 2006 (Unaudited)As PreviouslyReported
    
    
    Adjustment
    
    
    As RestatedAssetsCash and cash equivalents
    
    $
    14,360
    
    
    $
    --
    
    
    $
    14,360Accounts receivable, net
    
    
    172,315
    
    
    
    --
    
    
    
    172,315Inventories, net
    
    
    68,243
    
    
    
    --
    
    
    
    68,243Costs / estimated earnings in excess of
billings on uncompleted contracts
    
    
    55,400
    
    
    
    --
    
    
    
    55,400Deferred tax asset
    
    
    8,873
    
    
    
    --
    
    
    
    8,873Prepaid and other current assets
    
    
    28,662
    
    
    
    --
    
    
    
    28,662Total current assets
    
    
    347,853
    
    
    
    --
    
    
    
    347,853Property, plant and equipment, net
    
    
    39,029
    
    
    
    --
    
    
    
    39,029Goodwill, net
    
    
    593,188
    
    
    
    --
    
    
    
    593,188Intangibles:Customer relationships, net
    
    
    54,036
    
    
    
    --
    
    
    
    54,036Other intangibles, net
    
    
    35,471
    
    
    
    --
    
    
    
    35,471Deferred tax asset
    
    
    3,189
    
    
    
    15,876
    
    
    
    19,065Other assets
    
    
    4,969
    
    
    
    --
    
    
    
    4,969Total assets
    
    $
    1,077,735
    
    
    $
    15,876
    
    
    $
    1,093,611LiabilitiesAccounts payable
    
    $
    73,753
    
    
    $
    --
    
    
    $
    73,753Accrued compensation and benefits
    
    
    25,644
    
    
    
    --
    
    
    
    25,644Deferred revenue
    
    
    53,365
    
    
    
    --
    
    
    
    53,365Billings in excess of costs / estimated
earnings on uncompleted contracts
    
    
    15,483
    
    
    
    --
    
    
    
    15,483Current maturities of long-term debt
    
    
    704
    
    
    
    --
    
    
    
    704Income taxes
    
    
    6,300
    
    
    
    3,587
    
    
    
    9,887Other liabilities
    
    
    68,344
    
    
    
    --
    
    
    
    68,344Total current liabilities
    
    
    243,593
    
    
    
    3,587
    
    
    
    247,180Long-term debt
    
    
    243,886
    
    
    
    --
    
    
    
    243,886Other liabilities
    
    
    31,509
    
    
    
    --
    
    
    
    31,509Total liabilities
    
    
    518,988
    
    
    
    3,587
    
    
    
    522,575Stockholders equityPreferred Stock
    
    
    --
    
    
    
    --
    
    
    
    --Common Stock
    
    
    25
    
    
    
    --
    
    
    
    25Additional paid-in capital
    
    
    367,618
    
    
    
    56,523
    
    
    
    424,141Treasury stock
    
    
    (296,824
    )
    
    
    --
    
    
    
    (296,824
    )Accumulated other comprehensive income
    
    
    19,329
    
    
    
    --
    
    
    
    19,329Retained earnings
    
    
    468,599
    
    
    
    (44,234
    )
    
    
    424,365Total stockholders equity
    
    
    558,747
    
    
    
    12,289
    
    
    
    571,036Total liabilities and stockholders equity
    
    $
    1,077,735
    
    
    $
    15,876
    
    
    $
    1,093,611
 97




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##### Table of Contents



December 31, 2005 (Unaudited)As PreviouslyReported
    
    
    Adjustment
    
    
    As RestatedAssetsCash and cash equivalents
    
    $
    12,143
    
    
    $
    --
    
    
    $
    12,143Accounts receivable, net
    
    
    125,632
    
    
    
    --
    
    
    
    125,632Inventories, net
    
    
    53,448
    
    
    
    --
    
    
    
    53,448Costs / estimated earnings in excess of
billings on uncompleted contracts
    
    
    28,093
    
    
    
    --
    
    
    
    28,093Deferred tax asset
    
    
    11,084
    
    
    
    --
    
    
    
    11,084Prepaid and other current assets
    
    
    18,483
    
    
    
    --
    
    
    
    18,483Total current assets
    
    
    248,883
    
    
    
    --
    
    
    
    248,883Property, plant and equipment, net
    
    
    36,117
    
    
    
    --
    
    
    
    36,117Goodwill, net
    
    
    468,871
    
    
    
    --
    
    
    
    468,871Intangibles:Customer relationships, net
    
    
    24,333
    
    
    
    --
    
    
    
    24,333Other intangibles, net
    
    
    31,240
    
    
    
    --
    
    
    
    31,240Deferred tax asset
    
    
    3,979
    
    
    
    13,740
    
    
    
    17,719Other assets
    
    
    4,480
    
    
    
    --
    
    
    
    4,480Total assets
    
    $
    817,903
    
    
    $
    13,740
    
    
    $
    831,643LiabilitiesAccounts payable
    
    $
    39,487
    
    
    $
    --
    
    
    $
    39,487Accrued compensation and benefits
    
    
    12,650
    
    
    
    --
    
    
    
    12,650Deferred revenue
    
    
    21,473
    
    
    
    --
    
    
    
    21,473Billings in excess of costs / estimated
earnings on uncompleted contracts
    
    
    11,604
    
    
    
    --
    
    
    
    11,604Current maturities of long-term debt
    
    
    716
    
    
    
    --
    
    
    
    716Income taxes
    
    
    9,013
    
    
    
    3,587
    
    
    
    12,600Other liabilities
    
    
    44,933
    
    
    
    --
    
    
    
    44,933Total current liabilities
    
    
    139,876
    
    
    
    3,587
    
    
    
    143,463Long-term debt
    
    
    141,304
    
    
    
    --
    
    
    
    141,304Other liabilities
    
    
    8,142
    
    
    
    --
    
    
    
    8,142Total liabilities
    
    
    289,322
    
    
    
    3,587
    
    
    
    292,909Stockholders equityPreferred Stock
    
    
    --
    
    
    
    --
    
    
    
    --Common Stock
    
    
    24
    
    
    
    --
    
    
    
    24Additional paid-in capital
    
    
    355,981
    
    
    
    49,637
    
    
    
    405,618Treasury stock
    
    
    (296,811
    )
    
    
    --
    
    
    
    (296,811
    )Accumulated other comprehensive income
    
    
    11,135
    
    
    
    --
    
    
    
    11,135Retained earnings
    
    
    458,252
    
    
    
    (39,484
    )
    
    
    418,768Total stockholders equity
    
    
    528,581
    
    
    
    10,153
    
    
    
    538,734Total liabilities and stockholders equity
    
    $
    817,903
    
    
    $
    13,740
    
    
    $
    831,643
 98




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##### Table of Contents



October 1, 2005 (Unaudited)As PreviouslyReported
    
    
    Adjustment
    
    
    As RestatedAssetsCash and cash equivalents
    
    $
    11,925
    
    
    $
    --
    
    
    $
    11,925Accounts receivable, net
    
    
    131,757
    
    
    
    --
    
    
    
    131,757Inventories, net
    
    
    53,154
    
    
    
    --
    
    
    
    53,154Costs / estimated earnings in excess of
billings on uncompleted contracts
    
    
    24,052
    
    
    
    --
    
    
    
    24,052Deferred tax asset
    
    
    10,496
    
    
    
    --
    
    
    
    10,496Prepaid and other current assets
    
    
    19,228
    
    
    
    --
    
    
    
    19,228Total current assets
    
    
    250,612
    
    
    
    --
    
    
    
    250,612Property, plant and equipment, net
    
    
    36,330
    
    
    
    --
    
    
    
    36,330Goodwill, net
    
    
    457,362
    
    
    
    --
    
    
    
    457,362Intangibles:Customer relationships, net
    
    
    19,807
    
    
    
    --
    
    
    
    19,807Other intangibles, net
    
    
    31,596
    
    
    
    --
    
    
    
    31,596Deferred tax asset
    
    
    4,561
    
    
    
    14,081
    
    
    
    18,642Other assets
    
    
    4,548
    
    
    
    --
    
    
    
    4,548Total assets
    
    $
    804,816
    
    
    $
    14,081
    
    
    $
    818,897LiabilitiesAccounts payable
    
    $
    38,301
    
    
    $
    --
    
    
    $
    38,301Accrued compensation and benefits
    
    
    11,382
    
    
    
    --
    
    
    
    11,382Deferred revenue
    
    
    21,931
    
    
    
    --
    
    
    
    21,931Billings in excess of costs / estimated
earnings on uncompleted contracts
    
    
    11,472
    
    
    
    --
    
    
    
    11,472Current maturities of long-term debt
    
    
    576
    
    
    
    --
    
    
    
    576Income taxes
    
    
    9,744
    
    
    
    3,587
    
    
    
    13,331Other liabilities
    
    
    44,018
    
    
    
    --
    
    
    
    44,018Total current liabilities
    
    
    137,424
    
    
    
    3,587
    
    
    
    141,011Long-term debt
    
    
    149,308
    
    
    
    --
    
    
    
    149,308Other liabilities
    
    
    8,629
    
    
    
    --
    
    
    
    8,629Total liabilities
    
    
    295,361
    
    
    
    3,587
    
    
    
    298,948Stockholders equityPreferred Stock
    
    
    --
    
    
    
    --
    
    
    
    --Common Stock
    
    
    24
    
    
    
    --
    
    
    
    24Additional paid-in capital
    
    
    345,713
    
    
    
    48,506
    
    
    
    394,219Treasury stock
    
    
    (296,807
    )
    
    
    --
    
    
    
    (296,807
    )Accumulated other comprehensive income
    
    
    13,739
    
    
    
    --
    
    
    
    13,739Retained earnings
    
    
    446,786
    
    
    
    (38,012
    )
    
    
    408,774Total stockholders equity
    
    
    509,455
    
    
    
    10,494
    
    
    
    519,949Total liabilities and stockholders equity
    
    $
    804,816
    
    
    $
    14,081
    
    
    $
    818,897
 99




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##### Table of Contents



July 2, 2005 (Unaudited)As PreviouslyReported
    
    
    Adjustment
    
    
    As RestatedAssetsCash and cash equivalents
    
    $
    11,008
    
    
    $
    --
    
    
    $
    11,008Accounts receivable, net
    
    
    115,141
    
    
    
    --
    
    
    
    115,141Inventories, net
    
    
    52,454
    
    
    
    --
    
    
    
    52,454Costs / estimated earnings in excess of
billings on uncompleted contracts
    
    
    29,770
    
    
    
    --
    
    
    
    29,770Deferred tax asset
    
    
    10,031
    
    
    
    --
    
    
    
    10,031Prepaid and other current assets
    
    
    17,877
    
    
    
    --
    
    
    
    17,877Total current assets
    
    
    236,281
    
    
    
    --
    
    
    
    236,281Property, plant and equipment, net
    
    
    36,173
    
    
    
    --
    
    
    
    36,173Goodwill, net
    
    
    448,993
    
    
    
    --
    
    
    
    448,993Intangibles:Customer relationships, net
    
    
    14,257
    
    
    
    --
    
    
    
    14,257Other intangibles, net
    
    
    32,572
    
    
    
    --
    
    
    
    32,572Deferred tax asset
    
    
    3,984
    
    
    
    14,398
    
    
    
    18,382Other assets
    
    
    4,728
    
    
    
    --
    
    
    
    4,728Total assets
    
    $
    776,988
    
    
    $
    14,398
    
    
    $
    791,386LiabilitiesAccounts payable
    
    $
    32,647
    
    
    $
    --
    
    
    $
    32,647Accrued compensation and benefits
    
    
    13,833
    
    
    
    --
    
    
    
    13,833Deferred revenue
    
    
    22,401
    
    
    
    --
    
    
    
    22,401Billings in excess of costs / estimated
earnings on uncompleted contracts
    
    
    10,821
    
    
    
    --
    
    
    
    10,821Current maturities of long-term debt
    
    
    981
    
    
    
    --
    
    
    
    981Income taxes
    
    
    8,176
    
    
    
    3,587
    
    
    
    11,763Other liabilities
    
    
    40,472
    
    
    
    --
    
    
    
    40,472Total current liabilities
    
    
    129,331
    
    
    
    3,587
    
    
    
    132,918Long-term debt
    
    
    150,903
    
    
    
    --
    
    
    
    150,903Other liabilities
    
    
    9,107
    
    
    
    --
    
    
    
    9,107Total liabilities
    
    
    289,341
    
    
    
    3,587
    
    
    
    292,928Stockholders equityPreferred Stock
    
    
    --
    
    
    
    --
    
    
    
    --Common Stock
    
    
    24
    
    
    
    --
    
    
    
    24Additional paid-in capital
    
    
    336,457
    
    
    
    48,141
    
    
    
    384,598Treasury stock
    
    
    (296,797
    )
    
    
    --
    
    
    
    (296,797
    )Accumulated other comprehensive income
    
    
    12,946
    
    
    
    --
    
    
    
    12,946Retained earnings
    
    
    435,017
    
    
    
    (37,330
    )
    
    
    397,687Total stockholders equity
    
    
    487,647
    
    
    
    10,811
    
    
    
    498,458Total liabilities and stockholders equity
    
    $
    776,988
    
    
    $
    14,398
    
    
    $
    791,386
 Note 20: Subsequent Events
    100




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##### Table of Contents



Item  9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
  
 Item9A. Controls and Procedures.
 Evaluation of Disclosure Controls and Procedures
  Managements Report on Internal Control over Financial Reporting
  Internal Control 
Integrated Framework
  Attestation Report of the Registered Public Accounting Firm
 Remediation of Material Weakness
 101




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Changes in Internal Control Over Financial Reporting
   102




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Report of Independent Registered Public Accounting Firm on  Internal Control over Financial Reporting
 
         
 103




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Item9B. Other Information.
  104




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PART III
 
 Item 10. Directors, Executive Officers and Corporate Governance.
   
 Item 11. Executive Compensation.
  
 Item 12. Security Ownership of Certain Beneficial Owners And Management And Related
Stockholder Matters.
  
 Item 13. Certain Relationships and Related Transactions, and Director Independence.
  
 Item 14. Principal Accountant Fees and Services.
  105




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PART IV
 
 Item15. Exhibits and Financial Statement Schedules.
  (a)
    
    Documents filed as part of this report(1)
    
    Financial Statements  no financial statements have been filed in this Annual Report on Form
10-K other than those in Item 8(2)
    
    Financial Statement ScheduleSchedule II  Valuation and Qualifying Accounts(3)
    
    Exhibits
 ExhibitNumber
    
    Description2.1
    
    Agreement and Plan of Merger, dated as of December 20, 2004, by and among the Company, SF
Acquisition Co. and Norstan, Inc.
(1)2.2
    
    Tender and Voting Agreement, dated as of December 20, 2004, by and among the Company, SF
Acquisition Co. and Norstan, Inc.
(1)2.3
    
    Stock Option Agreement, dated as of December 20, 2004, by and among the Company, SF
Acquisition Co. and Norstan, Inc.
(1)2.4
    
    Interest Purchase Agreement by and between Platinum Equity, LLC and the Company dated as of
April 10, 2006
(2)2.5
    
    Amendment to the Interest Purchase Agreement by and between Platinum Equity, LLC and the
Company dated as of April 30, 2006
(3)3(i)
    
    Second
Restated Certificate of Incorporation of the Company, as amended
(4)3(ii)
    
    Amended and Restated By-laws of the Company, as amended (5)10.1
    
    Second Amended and Restated Credit Agreement, dated as of January 24, 2005, by and among
Black Box Corporation of Pennsylvania and SF Acquisition Co., as Borrowers, the Company, the
Guarantors parties thereto, the Lenders parties thereto and Citizens Bank of Pennsylvania
(6)10.2
    
    Guaranty and Suretyship Agreement, dated as of January 24, 2005, by and among the Company,
the Lenders and Citizens Bank of Pennsylvania
(7)10.3
    
    Guaranty and Suretyship Agreement, dated as of January 24, 2005, by and among the Guarantors,
the Lenders and Citizens Bank of Pennsylvania
(7)10.4
    
    First Amendment to the Second Amended and Restated Credit Agreement, dated as of February 17,
2005, by and among Black Box Corporation of Pennsylvania and Norstan, Inc., as Borrowers, the
Company, the Guarantors parties thereto, the Lenders parties thereto and Citizens Bank of
Pennsylvania
(8)10.5
    
    Second Amendment to the Second Amended and Restated Credit Agreement dated as of March 28,
2006 by and among Black Box Corporation of Pennsylvania and Norstan Inc., as Borrowers, the
Company, the Guarantors parties thereto, the Lenders parties thereto and Citizens Bank of
Pennsylvania
(3)10.6
    
    Waiver Letter dated February 28, 2007 by and among Black Box Corporation of Pennsylvania and
Norstan, Inc., as Borrowers, the Company, the Guarantors parties thereto, the Lenders parties
thereto and Citizens Bank of Pennsylvania
(9)10.7
    
    Waiver Letter dated May 28, 2007 by and among Black Box Corporation of Pennsylvania and
Norstan, Inc., as Borrowers, the Company, the Guarantors parties thereto, the Lenders parties
thereto and Citizens Bank of Pennsylvania
(9)
 106




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ExhibitNumber
    
    Description10.8
    
    Waiver Letter dated June 11, 2007 by and among Black Box Corporation of Pennsylvania and
Norstan, Inc., as Borrowers, the Company, the Guarantors parties thereto, the Lenders parties
thereto and Citizens Bank of Pennsylvania
(9)10.9
    
    Waiver Letter dated July 25, 2007 by and among Black Box Corporation of
Pennsylvania and Norstan, Inc., as Borrowers, the Company, the Guarantors parties thereto, the
Lenders parties thereto and Citizens Bank of Pennsylvania (14)10.10
    
    Agreement between the Company and Fred C. Young (5)10.11
    
    Agreement between the Company and Roger E. M. Croft (10)10.12
    
    Agreement between the Company and Francis W. Wertheimber (10)10.13
    
    Agreement between the Company and Michael McAndrew (11)10.14
    
    Agreement between the Company and R. Terry Blakemore (11)10.15
    
    1992 Stock Option Plan, as amended through August 9, 2005 (12)10.16
    
    1992 Director Stock Option Plan, as amended through August 8, 2006 (13)10.17
    
    Form of Black Box Corporation Non-Qualified Stock Option Agreement (pursuant to the 1992
Director Stock Option Plan; form of agreement in effect prior to August 10, 2004)
(10)10.18
    
    Form of Black Box Corporation Non-Qualified Stock Option Agreement (pursuant to the 1992
Director Stock Option Plan; form of agreement in effect as of August 10, 2004) (10)10.19
    
    Form of Black Box Corporation Non-Qualified Stock Option Agreement (pursuant to the 1992
Director Stock Option Plan; form of agreement in effect as of October 31, 2005)
(12)10.20
    
    Form of Black Box Corporation Non-Qualified Stock Option Agreement (pursuant to the 1992
Stock Option Plan) (10)10.21
    
    Form of Black Box Corporation Non-Qualified Stock Option Agreement (pursuant to the 1992
Stock Option Plan; form of agreement in effect as of October 31, 2005) (12)10.22
    
    Description of Executive Officer Incentive Bonus Plan for Fiscal 2006 (12)10.23
    
    Description of
Executive Officer Incentive Bonus Plan for Fiscal 2008
(9)10.24
    
    Summary of Director Compensation (14)21.1
    
    Subsidiaries of the Registrant (9)23.1
    
    Consent of Independent Registered Accounting Firm (14)31.1
    
    Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities and
Exchange Act of 1934, as amended, and Section 302 of the Sarbanes-Oxley Act of 2002
(14)31.2
    
    Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities and
Exchange Act of 1934, as amended, and Section 302 of the Sarbanes-Oxley Act of 2002
(14)32.1
    
    Certification of the Chief Executive Officer and Chief Financial Officer pursuant to Rule
13a-14(b) of the Securities and Exchange Act of 1934, as amended, and 18 U.S.C. Section 1350
as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
(14)99.1
    
    Definitive
Proxy Statement for the 2007 Annual Meeting of Stockholders
(14)
 
 (1)
    
    Filed as an exhibit to the Current Report on Form 8-K of the Company, file number
0-18706, filed with the SEC on December 23, 2004, and
incorporated herein by reference.(2)
    
    Filed as Exhibit 2.1 to the Current Report on Form 8-K of the Company, file number
0-18706, filed with the SEC on April 13, 2006, and incorporated
herein by reference. 107




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(3)
    
    Filed as an exhibit to the Current Report on Form 8-K of the Company, file number
0-18706, filed with the SEC on May 4, 2006, and incorporated
herein by reference.(4)
    
    Filed as Exhibit 3(i) to the Quarterly Report on Form 10-Q of the Company, file
number 0-18706, filed with the SEC on November 14, 2000, and
incorporated herein by reference.(5)
    
    Filed as an exhibit to the Annual Report on Form 10-K of the Company, file number
0-18706, filed with the SEC on June 14, 2004, and incorporated
herein by reference.(6)
    
    Filed as Exhibit (b)(2) to Amendment No. 4 to the Schedule TO filed by the Company
and SF Acquisition Co. on January 26, 2005, and incorporated
herein by reference.(7)
    
    Filed as an exhibit to the Quarterly Report on Form 10-Q of the Company, file
number 0-18706, filed with the SEC on February 10, 2005, and
incorporated herein by reference.(8)
    
    Filed as Exhibit 10.1 to the Current Report on Form 8-K of the Company, file number
0-18706, filed with the SEC on February 23, 2005, and
incorporated herein by reference.(9)
    
    Filed as an exhibit to the Quarterly Report on Form 10-Q of the Company, file
number 0-18706, filed with the SEC on July 23, 2007, and
incorporated herein by reference.(10)
    
    Filed as an exhibit to the Quarterly Report on Form 10-Q of the Company, file
number 0-18706, filed with the SEC on November 12, 2004, and
incorporated herein by reference.(11)
    
    Filed as an exhibit to the Current Report on Form 8-K of the Company, file number
0-18706, filed with the SEC on May 22, 2007, and incorporated
herein by reference.(12)
    
    Filed as an exhibit to the Quarterly Report on Form 10-Q of the Company, file
number 0-18706, filed with the SEC on November 10, 2005, and
incorporated herein by reference.(13)
    
    Filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q of the Company, file
number 0-18706, filed with the SEC on November 9, 2006, and
incorporated herein by reference.(14)
    
    Filed herewith.   108




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SIGNATURES
  BLACK BOX CORPORATION
  /s/ Michael McAndrewMichael McAndrew, Vice President, ChiefFinancial Officer, Treasurer, Secretary and 
Principal Accounting Officer  Signatures
    
    Capacity
    
    Date/s/ WILLIAM F. ANDREWS

William F. Andrews
    
    Director
    
    August 13, 2007/s/ RICHARD L. CROUCH

Richard L. Crouch
    
    Director
    
    August 13, 2007/s/ THOMAS W. GOLONSKI

Thomas W. Golonski
    
    Director
    
    August 13, 2007/s/ THOMAS G. GREIG

Thomas G. Greig
    
    Director and Chairman of
the Board
    
    August 13, 2007/s/ EDWARD A. NICHOLSON

Edward A. Nicholson
    
    Director
    
    August 13, 2007/s/ TERRY BLAKEMORE

Terry Blakemore
    
    Interim President and Chief
Executive Officer
    
    August 13, 2007/s/ MICHAEL MCANDREW

Michael McAndrew
    
    Vice President,Chief
Financial Officer, 
Secretary, Treasurer and 
Principal Accounting Officer
    
    August 13, 2007
 109




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BLACK BOX CORPORATION
 Valuation and Qualifying Accounts
 Balance at
    
    
   Additions
    
    
    Additions
    
    
    Reductions
    
    
    BalanceBeginning of
    
    
    Charged to
    
    
    from
    
    
    from
    
    
    at End ofDescription
    
    Period
    
    
    Expenses
    
    
    Acquisitions
    
    
    Reserves
    
    
    PeriodYear Ended March 31,
2007Inventory reserves
    
    $
    14,287
    
    
    $
    3,036
    
    
    $
    12,735
    
    
    $
    (7,297
    )
    
    $
    22,761Allowance for
doubtful
accounts/sales
returns
    
    
    9,517
    
    
    
    8,710
    
    
    
    5,423
    
    
    
    (9,397
    )
    
    
    14,253Restructuring reserve
    
    
    10,698
    
    
    
    --
    
    
    
    27,034
    
    
    
    (18,304
    )
    
    
    19,428Year Ended March 31,
2006Inventory reserves
    
    $
    12,546
    
    
    $
    4,136
    
    
    $
    43
    
    
    $
    (2,438
    )
    
    $
    14,287Allowance for
doubtful
accounts/sales
returns
    
    
    7,342
    
    
    
    9,182
    
    
    
    49
    
    
    
    (7,056
    )
    
    
    9,517Restructuring reserve
    
    
    16,598
    
    
    
    5,290
    
    
    
    364
    
    
    
    (11,554
    )
    
    
    10,698Year Ended March 31,
2005Inventory reserves
    
    $
    4,840
    
    
    $
    2,106
    
    
    $
    9,335
    
    
    $
    (3,735
    )
    
    $
    12,546Allowance for
doubtful
accounts/sales
returns
    
    
    10,426
    
    
    
    7,097
    
    
    
    1,042
    
    
    
    (11,223
    )
    
    
    7,342Restructuring reserve
    
    
    593
    
    
    
    3,019
    
    
    
    14,761
    
    
    
    (1,775
    )
    
    
    16,598
 110




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EXHIBIT INDEX
 ExhibitNumber
    
    Description2.1
    
    Agreement and Plan of Merger, dated as of December 20, 2004, by and among the Company, SF
Acquisition Co. and Norstan, Inc. (1)2.2
    
    Tender and Voting Agreement, dated as of December 20, 2004, by and among the Company, SF
Acquisition Co. and Norstan, Inc. (1)2.3
    
    Stock Option Agreement, dated as of December 20, 2004, by and among the Company, SF
Acquisition Co. and Norstan, Inc. (1)2.4
    
    Interest Purchase Agreement by and between Platinum Equity, LLC and the Company dated as of
April 10, 2006 (2)2.5
    
    Amendment to the Interest Purchase Agreement by and between Platinum Equity, LLC and the
Company dated as of April 30, 2006 (3)3(i)
    
    Second Restated Certificate of Incorporation of the Company, as amended (4)3(ii)
    
    Amended and Restated By-laws of the Company, as amended (5)10.1
    
    Second Amended and Restated Credit Agreement, dated as of January 24, 2005, by and among
Black Box Corporation of Pennsylvania and SF Acquisition Co., as Borrowers, the Company, the
Guarantors parties thereto, the Lenders parties thereto and Citizens Bank of Pennsylvania (6)10.2
    
    Guaranty and Suretyship Agreement, dated as of January 24, 2005, by and among the Company,
the Lenders and Citizens Bank of Pennsylvania (7)10.3
    
    Guaranty and Suretyship Agreement, dated as of January 24, 2005, by and among the Guarantors,
the Lenders and Citizens Bank of Pennsylvania (7)10.4
    
    First Amendment to the Second Amended and Restated Credit Agreement, dated as of February 17,
2005, by and among Black Box Corporation of Pennsylvania and Norstan, Inc., as Borrowers, the
Company, the Guarantors parties thereto, the Lenders parties thereto and Citizens Bank of
Pennsylvania (8)10.5
    
    Second Amendment to the Second Amended and Restated Credit Agreement dated as of March 28,
2006 by and among Black Box Corporation of Pennsylvania and Norstan Inc., as Borrowers, the
Company, the Guarantors parties thereto, the Lenders parties thereto and Citizens Bank of
Pennsylvania (3)10.6
    
    Waiver Letter dated February 28, 2007 by and among Black Box Corporation of Pennsylvania and
Norstan, Inc., as Borrowers, the Company, the Guarantors parties thereto, the Lenders parties
thereto and Citizens Bank of Pennsylvania (9)10.7
    
    Waiver Letter dated May 28, 2007 by and among Black Box Corporation of Pennsylvania and
Norstan, Inc., as Borrowers, the Company, the Guarantors parties thereto, the Lenders parties
thereto and Citizens Bank of Pennsylvania (9)10.8
    
    Waiver Letter dated June 11, 2007 by and among Black Box Corporation of Pennsylvania and
Norstan, Inc., as Borrowers, the Company, the Guarantors parties thereto, the Lenders parties
thereto and Citizens Bank of Pennsylvania (9)




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10.9
    
    Waiver Letter dated July 25, 2007 by and among Black Box Corporation of Pennsylvania and
Norstan, Inc., as Borrowers, the Company, the Guarantors parties thereto, the Lenders parties
thereto and Citizens Bank of Pennsylvania (14)10.10
    
    Agreement between the Company and Fred C. Young (5)10.11
    
    Agreement between the Company and Roger E. M. Croft (10)10.12
    
    Agreement between the Company and Francis W. Wertheimber (10)10.13
    
    Agreement between the Company and Michael McAndrew (11)10.14
    
    Agreement between the Company and R. Terry Blakemore (11)10.15
    
    1992 Stock Option Plan, as amended through August 9, 2005 (12)10.16
    
    1992 Director Stock Option Plan, as amended through August 8, 2006 (13)10.17
    
    Form of Black Box Corporation Non-Qualified Stock Option Agreement (pursuant to the 1992
Director Stock Option Plan; form of agreement in effect prior to August 10, 2004)
(10)10.18
    
    Form of Black Box Corporation Non-Qualified Stock Option Agreement (pursuant to the 1992
Director Stock Option Plan; form of agreement in effect as of August 10, 2004) (10)10.19
    
    Form of Black Box Corporation Non-Qualified Stock Option Agreement (pursuant to the 1992
Director Stock Option Plan; form of agreement in effect as of October 31, 2005)
(12)10.20
    
    Form of Black Box Corporation Non-Qualified Stock Option Agreement (pursuant to the 1992
Stock Option Plan) (10)10.21
    
    Form of Black Box Corporation Non-Qualified Stock Option Agreement (pursuant to the 1992
Stock Option Plan; form of agreement in effect as of October 31, 2005) (12)10.22
    
    Description of Executive Officer Incentive Bonus Plan for Fiscal 2006 (12)10.23
    
    Description of Executive Officer Incentive Bonus Plan for Fiscal 2008 (9)10.24
    
    Summary of Director Compensation (14)21.1
    
    Subsidiaries of the Registrant (9)23.1
    
    Consent of Independent Registered Accounting Firm (14)31.1
    
    Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities and
Exchange Act of 1934, as amended, and Section 302 of the Sarbanes-Oxley Act of 2002
(14)31.2
    
    Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities and
Exchange Act of 1934, as amended, and Section 302 of the Sarbanes-Oxley Act of 2002
(14)32.1
    
    Certification of the Chief Executive Officer and Chief Financial Officer pursuant to Rule
13a-14(b) of the Securities and Exchange Act of 1934, as amended, and 18 U.S.C. Section 1350
as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (14)99.1
    
    Definitive Proxy Statement for the 2007 Annual Meeting of Stockholders (14)




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(1)
    
    Filed as an exhibit to the Current Report on Form 8-K of the Company, file number
0-18706, filed with the SEC on December 23, 2004, and incorporated herein by reference.(2)
    
    Filed as Exhibit 2.1 to the Current Report on Form 8-K of the Company, file number
0-18706, filed with the SEC on April 13, 2006, and incorporated herein by reference.(3)
    
    Filed as an exhibit to the Current Report on Form 8-K of the Company, file number
0-18706, filed with the SEC on May 4, 2006, and incorporated herein by reference.(4)
    
    Filed as Exhibit 3(i) to the Quarterly Report on Form 10-Q of the Company, file
number 0-18706, filed with the SEC on November 14, 2000, and incorporated herein by reference.(5)
    
    Filed as an exhibit to the Annual Report on Form 10-K of the Company, file number
0-18706, filed with the SEC on June 14, 2004, and incorporated herein by reference.(6)
    
    Filed as Exhibit (b)(2) to Amendment No. 4 to the Schedule TO filed by the Company
and SF Acquisition Co. on January 26, 2005, and incorporated herein by reference.(7)
    
    Filed as an exhibit to the Quarterly Report on Form 10-Q of the Company, file
number 0-18706, filed with the SEC on February 10, 2005, and incorporated herein by reference.(8)
    
    Filed as Exhibit 10.1 to the Current Report on Form 8-K of the Company, file number
0-18706, filed with the SEC on February 23, 2005, and incorporated herein by reference.(9)
    
    Filed as an exhibit to the Quarterly Report on Form 10-Q of the Company, file
number 0-18706, filed with the SEC on July 23, 2007, and incorporated herein by reference.(10)
    
    Filed as an exhibit to the Quarterly Report on Form 10-Q of the Company, file
number 0-18706, filed with the SEC on November 12, 2004, and incorporated herein by reference.(11)
    
    Filed as an exhibit to the Current Report on Form 8-K of the Company, file number
0-18706, filed with the SEC on May 22, 2007, and incorporated herein by reference.(12)
    
    Filed as an exhibit to the Quarterly Report on Form 10-Q of the Company, file
number 0-18706, filed with the SEC on November 10, 2005, and incorporated herein by reference.(13)
    
    Filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q of the Company, file
number 0-18706, filed with the SEC on November 9, 2006, and incorporated herein by reference.(14)
    
    Filed herewith.