Eleven-Year Financial Summary
 For the years ended January 31Dollars in thousands, except per-share data
    
    2010
    
    2009
    
    2008OPERATIONS FOR THE YEARNet salesOngoing operations
    
    $
    237,782
    
    
    $
    279,913
    
    
    $
    233,957Sold businesses(a)
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    237,782
    
    
    
    279,913
    
    
    
    233,957Gross profit(b)
    
    
    67,852
    
    
    
    73,448
    
    
    
    63,676Operating incomeOngoing operations
    
    
    43,220
    
    
    
    46,394
    
    
    
    41,145Sold businesses(a)
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    43,220
    
    
    
    46,394
    
    
    
    41,145Income before income taxes
    
    
    43,322
    
    
    
    46,901
    
    
    
    42,224Net income
    
    $
    28,574
    
    
    $
    30,770
    
    
    $
    27,802Net income as % of sales
    
    
    12.0
    %
    
    
    11.0
    %
    
    
    11.9
    %Net income as % of beginning equity
    
    
    25.2
    %
    
    
    26.0
    %
    
    
    28.3
    %Cash dividends
    
    $
    9,911
    
    
    $
    31,884
    (c)
    
    $
    7,966FINANCIAL POSITIONCurrent assets
    
    $
    117,747
    
    
    $
    98,073
    
    
    $
    100,869Current liabilities
    
    
    25,960
    
    
    
    23,322
    
    
    
    22,108Working capital
    
    $
    91,787
    
    
    $
    74,751
    
    
    $
    78,761Current ratio
    
    
    4.54
    
    
    
    4.21
    
    
    
    4.56Property, plant and equipment
    
    $
    33,029
    
    
    $
    35,880
    
    
    $
    35,743Total assets
    
    
    170,309
    
    
    
    144,415
    
    
    
    147,861Long-term debt, less current portion
    
    
    
    
    
    
    
    
    
    
    Shareholders equity
    
    $
    133,251
    
    
    $
    113,556
    
    
    $
    118,275Long-term debt / total capitalization
    
    
    0.0
    %
    
    
    0.0
    %
    
    
    0.0
    %Inventory turnover (CGS / average inventory)(b)
    
    
    5.3
    
    
    
    5.2
    
    
    
    5.3CASH FLOWS PROVIDED BY (USED IN)Operating activities
    
    $
    47,643
    
    
    $
    39,037
    
    
    $
    27,151Investing activities
    
    
    (13,396
    )
    
    
    (7,000
    )
    
    
    (4,433
    )Financing activities
    
    
    (9,867
    )
    
    
    (36,969
    )
    
    
    (8,270
    )Increase (decrease) in cash and cash equivalents
    
    
    24,417
    
    
    
    (5,005
    )
    
    
    14,489COMMON STOCK DATANet income per sharebasic
    
    $
    1.58
    
    
    $
    1.71
    
    
    $
    1.54Net income per sharediluted
    
    
    1.58
    
    
    
    1.70
    
    
    
    1.53Cash dividends per share
    
    
    0.55
    
    
    
    1.77
    (c)
    
    
    0.44Book value per share
    
    
    7.38
    
    
    
    6.30
    
    
    
    6.52Stock price range during yearHigh
    
    $
    33.18
    
    
    $
    47.82
    
    
    $
    45.85Low
    
    
    15.37
    
    
    
    20.60
    
    
    
    26.20Close
    
    $
    28.58
    
    
    $
    21.81
    
    
    $
    30.02Shares and stock units outstanding, year-end (in thousands)
    
    
    18,051
    
    
    
    18,027
    
    
    
    18,130Number of shareholders, year-end
    
    
    7,767
    
    
    
    8,268
    
    
    
    8,700OTHER DATAPrice / earnings ratio
    
    
    18.1
    
    
    
    12.8
    
    
    
    19.6Average number of employees
    
    
    930
    
    
    
    1,070
    
    
    
    930Sales per employee
    
    $
    256
    
    
    $
    262
    
    
    $
    252Backlog
    
    $
    74,718
    
    
    $
    80,361
    
    
    $
    66,628
 
 All per-share, shares outstanding and market price data reflect the October 2004 two-for-one
stock split, the January 2003 two-for-one stock split and the July 2001 three-for-two stock split.All other figures are as reported.Price / earnings ratio is determined as closing stock price divided by net income per
sharediluted.Book value per share is computed by dividing total shareholders equity by
the number of common shares and stock units outstanding.(a)
    
    In fiscal 2003,
2001 and 2000, the company sold its Beta Raven Industrial Controls, Plastic
Tank, and Glasstite businesses, respectively.(b)
    
    All years reflect the
reclassification of R&D expense from cost of goods sold. (See Note 1.)(c)
    
    Includes special dividends of $1.25 per share in fiscal 2009 and $.625 per
share in fiscal 2005. 16 2010 ANNUAL REPORT RAVEN




---



##### 



2007
    
    2006
    
    2005
    
    2004
    
    2003
    
    2002
    
    2001
    
    2000$
    217,529
    
    
    $
    204,528
    
    
    $
    168,086
    
    
    $
    142,727
    
    
    $
    119,589
    
    
    $
    112,018
    
    
    $
    113,360
    
    
    $
    107,862
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,314
    
    
    
    6,497
    
    
    
    19,498
    
    
    
    42,523217,529
    
    
    
    204,528
    
    
    
    168,086
    
    
    
    142,727
    
    
    
    120,903
    
    
    
    118,515
    
    
    
    132,858
    
    
    
    150,38557,540
    
    
    
    55,714
    
    
    
    45,212
    
    
    
    35,488
    
    
    
    28,828
    
    
    
    25,340
    
    
    
    21,740
    
    
    
    24,85338,302
    
    
    
    37,284
    
    
    
    27,862
    
    
    
    21,981
    
    
    
    16,861
    
    
    
    13,788
    
    
    
    7,417
    (d)
    
    
    7,971
    
    
    
    
    
    
    
    
    
    
    
    (355
    )
    
    
    204
    
    
    
    (613
    )
    
    
    3,331
    (e)
    
    
    2,606
    (f)38,302
    
    
    
    37,284
    
    
    
    27,862
    
    
    
    21,626
    
    
    
    17,065
    
    
    
    13,175
    
    
    
    10,748
    
    
    
    10,57738,835
    
    
    
    37,494
    
    
    
    27,955
    
    
    
    21,716
    
    
    
    17,254
    
    
    
    13,565
    
    
    
    10,924
    
    
    
    10,503$
    25,441
    
    
    $
    24,262
    
    
    $
    17,891
    
    
    $
    13,836
    
    
    $
    11,185
    
    
    $
    8,847
    
    
    $
    6,411
    (d)(e)
    
    $
    6,762
    (f)11.7
    %
    
    
    11.9
    %
    
    
    10.6
    %
    
    
    9.7
    %
    
    
    9.3
    %
    
    
    7.5
    %
    
    
    4.8
    %
    
    
    4.5
    %30.1
    %
    
    
    36.7
    %
    
    
    26.9
    %
    
    
    23.8
    %
    
    
    21.5
    %
    
    
    18.4
    %
    
    
    11.8
    %
    
    
    10.9
    %$
    6,507
    
    
    $
    5,056
    
    
    $
    15,298
    (c)
    
    $
    3,075
    
    
    $
    2,563
    
    
    $
    2,371
    
    
    $
    2,399
    
    
    $
    2,895$
    73,219
    
    
    $
    71,345
    
    
    $
    61,592
    
    
    $
    55,710
    
    
    $
    49,351
    
    
    $
    45,308
    
    
    $
    51,817
    
    
    $
    55,37116,464
    
    
    
    20,050
    
    
    
    20,950
    
    
    
    11,895
    
    
    
    13,167
    
    
    
    13,810
    
    
    
    13,935
    
    
    
    14,702$
    56,755
    
    
    $
    51,295
    
    
    $
    40,642
    
    
    $
    43,815
    
    
    $
    36,184
    
    
    $
    31,498
    
    
    $
    37,882
    
    
    $
    40,6694.45
    
    
    
    3.56
    
    
    
    2.94
    
    
    
    4.68
    
    
    
    3.75
    
    
    
    3.28
    
    
    
    3.72
    
    
    
    3.77$
    36,264
    
    
    $
    25,602
    
    
    $
    19,964
    
    
    $
    15,950
    
    
    $
    16,455
    
    
    $
    14,059
    
    
    $
    11,647
    
    
    $
    15,068119,764
    
    
    
    106,157
    
    
    
    88,509
    
    
    
    79,508
    
    
    
    72,816
    
    
    
    67,836
    
    
    
    65,656
    
    
    
    74,047
    
    
    
    9
    
    
    
    
    
    
    
    57
    
    
    
    151
    
    
    
    280
    
    
    
    2,013
    
    
    
    3,024$
    98,268
    
    
    $
    84,389
    
    
    $
    66,082
    
    
    $
    66,471
    
    
    $
    58,236
    
    
    $
    52,032
    
    
    $
    47,989
    
    
    $
    54,5190.0
    %
    
    
    0.0
    %
    
    
    0.0
    %
    
    
    0.1
    %
    
    
    0.3
    %
    
    
    0.5
    %
    
    
    4.0
    %
    
    
    5.3
    %5.4
    
    
    
    5.9
    
    
    
    5.8
    
    
    
    6.1
    
    
    
    4.8
    
    
    
    5.1
    
    
    
    4.5
    
    
    
    3.8$
    26,313
    
    
    $
    21,189
    
    
    $
    18,871
    
    
    $
    19,732
    
    
    $
    12,735
    
    
    $
    18,496
    
    
    $
    9,441
    
    
    $
    10,375(18,664
    )
    
    
    (11,435
    )
    
    
    (7,631
    )
    
    
    (4,352
    )
    
    
    (9,166
    )
    
    
    (13,152
    )
    
    
    9,752
    
    
    
    6,323(10,277
    )
    
    
    (6,946
    )
    
    
    (19,063
    )
    
    
    (6,155
    )
    
    
    (5,830
    )
    
    
    (8,539
    )
    
    
    (14,227
    )
    
    
    (16,326
    )(2,626
    )
    
    
    2,790
    
    
    
    (7,823
    )
    
    
    9,225
    
    
    
    (2,261
    )
    
    
    (3,195
    )
    
    
    4,966
    
    
    
    372$
    1.41
    
    
    $
    1.34
    
    
    $
    0.99
    
    
    $
    0.77
    
    
    $
    0.61
    
    
    $
    0.48
    
    
    $
    0.31
    
    
    $
    0.261.39
    
    
    
    1.32
    
    
    
    0.97
    
    
    
    0.75
    
    
    
    0.60
    
    
    
    0.47
    
    
    
    0.31
    
    
    
    0.260.36
    
    
    
    0.28
    
    
    
    0.85
    (c)
    
    
    0.17
    
    
    
    0.14
    
    
    
    0.13
    
    
    
    0.12
    
    
    
    0.115.45
    
    
    
    4.67
    
    
    
    3.67
    
    
    
    3.68
    
    
    
    3.21
    
    
    
    2.82
    
    
    
    2.53
    
    
    
    2.32$
    42.70
    
    
    $
    33.15
    
    
    $
    26.94
    
    
    $
    15.23
    
    
    $
    9.20
    
    
    $
    5.88
    
    
    $
    3.48
    
    
    $
    3.0425.46
    
    
    
    16.54
    
    
    
    13.08
    
    
    
    7.56
    
    
    
    4.38
    
    
    
    3.02
    
    
    
    1.88
    
    
    
    2.25$
    28.43
    
    
    $
    31.60
    
    
    $
    18.38
    
    
    $
    14.11
    
    
    $
    7.91
    
    
    $
    5.64
    
    
    $
    3.04
    
    
    $
    2.4018,044
    
    
    
    18,072
    
    
    
    17,999
    
    
    
    18,041
    
    
    
    18,133
    
    
    
    18,424
    
    
    
    18,956
    
    
    
    23,4968,992
    
    
    
    9,263
    
    
    
    6,269
    
    
    
    3,560
    
    
    
    2,781
    
    
    
    2,387
    
    
    
    2,460
    
    
    
    2,74920.5
    
    
    
    23.9
    
    
    
    18.9
    
    
    
    18.8
    
    
    
    13.2
    
    
    
    12.1
    
    
    
    9.8
    
    
    
    9.2884
    
    
    
    845
    
    
    
    835
    
    
    
    787
    
    
    
    784
    
    
    
    858
    
    
    
    1,082
    
    
    
    1,369$
    246
    
    
    $
    242
    
    
    $
    201
    
    
    $
    181
    
    
    $
    154
    
    
    $
    138
    
    
    $
    123
    
    
    $
    110$
    44,237
    
    
    $
    43,619
    
    
    $
    43,646
    
    
    $
    47,120
    
    
    $
    42,826
    
    
    $
    33,834
    
    
    $
    38,239
    
    
    $
    44,935
 
 (d)
    
    Includes $2.6 million of business repositioning charges, net
of gains on plant sales, primarily in Electronic Systems and Aerostar.(e)
    
    Includes the $3.1 million pretax gain ($1.4 million net of tax) on
the sale of the companys Plastic Tank Division.(f)
    
    Includes the $1.2 million pretax gain ($764,000 net of tax) on the sale of assets of the
companys Glasstite subsidiary. 2010 ANNUAL REPORT RAVEN 17




---



##### 



Financial Review and Analysis
    
    
    Executive Summary
    
    Results of OperationsSegment
Analysis
    
    Outlook
    
    Liquidity and
Capital Resources
    
    Off-balance Sheet Arrangements and Contractual
Obligations
    
    Critical Accounting Estimates
    
    New
Accounting Standards
 Reclassification of Research and Development Expenses
   For the year ended
    
    For the year endedJanuary 31, 2009
    
    January 31, 2008As
    
    As
    
    As
    
    AsDollars in thousands
    
    reported
    
    reclassified
    
    reported
    
    reclassifiedNet sales
    
    $
    279,913
    
    
    $
    279,913
    
    
    $
    233,957
    
    
    $
    233,957Cost of goods sold
    
    
    212,032
    
    
    
    206,465
    
    
    
    174,809
    
    
    
    170,281Gross profit
    
    
    67,881
    
    
    
    73,448
    
    
    
    59,148
    
    
    
    63,676Gross margins
    
    
    24.3
    %
    
    
    26.2
    %
    
    
    25.3
    %
    
    
    27.2
    %Research and development expenses
    
    
    
    
    
    
    5,848
    
    
    
    
    
    
    
    4,925Selling, general and administrative expenses
    
    
    21,487
    
    
    
    21,206
    
    
    
    18,003
    
    
    
    17,606Operating income
    
    $
    46,394
    
    
    $
    46,394
    
    
    $
    41,145
    
    
    $
    41,145
 EXECUTIVE SUMMARY
   
    
    Consolidated net sales, gross margins, operating income, operating margins, net income
and earnings per share
    
    Cash flow from operations and payments to shareholders
    
    Return on
sales, assets and equity
    
    Segment net sales, gross profit, gross margins, operating income
and operating margins
 2010
ANNUAL REPORT RAVEN 19




---



##### 



Financial Review and Analysis (continued)
   %
    
    
    
    
    
    %Dollars in thousands, except per share data
    
    2010
    
    change
    
    2009
    
    change
    
    2008Results of OperationsNet sales
    
    $
    237,782
    
    
    
    (15
    )%
    
    $
    279,913
    
    
    
    20
    %
    
    $
    233,957Gross margins(a)
    
    
    28.5
    %
    
    
    
    
    
    
    26.2
    %
    
    
    
    
    
    
    27.2
    %Operating income
    
    $
    43,220
    
    
    
    (7
    )%
    
    $
    46,394
    
    
    
    13
    %
    
    $
    41,145Operating margins
    
    
    18.2
    %
    
    
    
    
    
    
    16.6
    %
    
    
    
    
    
    
    17.6
    %Net income
    
    $
    28,574
    
    
    
    (7
    )%
    
    $
    30,770
    
    
    
    11
    %
    
    $
    27,802Diluted earnings per share
    
    $
    1.58
    
    
    
    (7
    )%
    
    $
    1.70
    
    
    
    11
    %
    
    $
    1.53
 
 (a)
    
    The companys gross margins may not be comparable to industry peers due to
variability in the classification of expenses across industries in which the company operates. Cash Flow and Payments to ShareholdersCash flow from operations
    
    $
    47,643
    
    
    
    
    
    
    $
    39,037
    
    
    
    
    
    
    $
    27,151Cash dividends
    
    $
    9,911
    
    
    
    
    
    
    $
    31,884
    
    
    
    
    
    
    $
    7,966Common stock repurchases
    
    
    
    
    
    
    
    
    
    
    5,180
    
    
    
    
    
    
    
    592Cash returned to shareholders
    
    $
    9,911
    
    
    
    
    
    
    $
    37,064
    
    
    
    
    
    
    $
    8,558Performance MeasuresReturn on net sales (net income / net sales)
    
    
    12.0
    %
    
    
    
    
    
    
    11.0
    %
    
    
    
    
    
    
    11.9
    %Return on average assets (net income / average assets)
    
    
    18.2
    %
    
    
    
    
    
    
    21.1
    %
    
    
    
    
    
    
    20.8
    %Return on beginning equity (net income / beginning equity)
    
    
    25.2
    %
    
    
    
    
    
    
    26.0
    %
    
    
    
    
    
    
    28.3
    %
 Results of OperationsFiscal 2010 versus Fiscal 2009
      20 2010 ANNUAL REPORT RAVEN




---



##### 



Results of OperationsFiscal 2009 versus Fiscal 2008
  Strategic Investments
  Site-Specific Technology Development Group, Inc. (SST)
  Ranchview, Inc. (Ranchview)
  Cash Flow and Payments to Shareholders
    Performance Measures
  2010
ANNUAL REPORT RAVEN 21




---



##### 



Financial Review and Analysis (continued)
 RESULTS OF OPERATIONSSEGMENT ANALYSIS
 Applied Technology
   %
    
    
    
    
    
    %Dollars in thousands
    
    2010
    
    change
    
    2009
    
    change
    
    2008Applied TechnologyNet sales
    
    $
    86,217
    
    
    
    (16
    )%
    
    $
    103,098
    
    
    
    60
    %
    
    $
    64,291Gross profit
    
    
    37,889
    
    
    
    (19
    )%
    
    
    46,591
    
    
    
    63
    %
    
    
    28,640Gross margins
    
    
    43.9
    %
    
    
    
    
    
    
    45.2
    %
    
    
    
    
    
    
    44.5
    %Operating income
    
    $
    25,722
    
    
    
    (24
    )%
    
    $
    33,884
    
    
    
    77
    %
    
    $
    19,102Operating margins
    
    
    29.8
    %
    
    
    
    
    
    
    32.9
    %
    
    
    
    
    
    
    29.7
    %
 
    
    
    Economic uncertainty.The governments calendar 2009 farm income forecast was
significantly lower than 2008 actual levels. Farm production costs declined from
prior-year levels; however, they were outpaced by the decline in crop prices. Expectations
of lower farm income and economic uncertainty led growers and custom spray applicators to
defer purchases. These factors had a negative impact on substantially all of the segments
product categories.
    
    New product sales.Products that enable entry into new markets, have new
applications, or are customized are included in the new product sales category for 24
months from their release date. Fiscal 2010 new product sales decreased from a year ago,
reflecting the highly successful fiscal 2009 launches of innovative field computers.
    
    International sales.International sales of $17.1 million fell $1.7 million (9%)
year-over-year. Net sales outside the U.S. accounted for 20% of segment sales in fiscal
2010 versus 18% in fiscal 2009. Declines in some markets were partially offset by
expansion into regions not previously served.
    
    Negative operating leverage.Gross margins of 43.9% in fiscal 2010 fell from 45.2% in
fiscal 2009. Selling expenses in the latest year were $7.0 million, or 8.1% of net sales,
compared with $7.5 million, or 7.3% of net sales, for fiscal 2009. The change in profits
and selling expenses as a percentage of sales reflected the negative impact of falling
sales on operating leverage.
    
    Research and development.R&D expenses of $5.2 million were flat between the two
years; however, they increased as a percentage of net sales6.0% for fiscal 2010 versus
5.0% for fiscal 2009. Focused investments in R&D are critical to product development,
which will support future growth and competitive position in the marketplace.
   
    
    Healthy global farm fundamentals.Commodity prices were strong through the first nine
months of the year but fell from their highs. However, agricultural market fundamentals
remained strong and continued to influence growers capital investment decisions,
increasing demand for Applied Technology precision agriculture equipment.
    
    Investments in select global markets.International sales rose to 18% of segment
sales in fiscal 2009 compared with 16% in fiscal 2008, an increase of $8.7 million.
    
    Increased acceptance of precision agriculture.Double-digit year-over-year sales
growth was achieved for all product categories (standard, precision, steering and
AutoboomTM). This reflected strong customer demand for flagship sprayer
products as well as newer
products such as the CruizerTMa simple and affordable guidance system targeted
at new entrants to the precision agriculture market.
 22 2010 ANNUAL REPORT RAVEN




---



##### 




    
    Positive operating leverage.Gross margins of 45.2% in fiscal 2009 compared favorably
to fiscal 2008 gross margins of 44.5%. Fiscal 2009 selling expenses were $7.5 million, or
7.3% of net sales, compared with fiscal 2008 selling expenses of $5.3 million, or 8.2% of
net sales. These improvements came from positive operating leverage generated through
increased sales volume.
 Engineered Films
   %
    
    
    
    
    
    %Dollars in thousands
    
    2010
    
    change
    
    2009
    
    change
    
    2008Engineered FilmsNet sales
    
    $
    63,783
    
    
    
    (29
    )%
    
    $
    89,858
    
    
    
    5
    %
    
    $
    85,316Gross profit
    
    
    13,013
    
    
    
    (10
    )%
    
    
    14,502
    
    
    
    (32
    )%
    
    
    21,236Gross margins
    
    
    20.4
    %
    
    
    
    
    
    
    16.1
    %
    
    
    
    
    
    
    24.9
    %Operating income
    
    $
    10,232
    
    
    
    (6
    )%
    
    $
    10,919
    
    
    
    (38
    )%
    
    $
    17,739Operating margins
    
    
    16.0
    %
    
    
    
    
    
    
    12.2
    %
    
    
    
    
    
    
    20.8
    %
 
   
    
    Depressed markets.Dysfunctional credit markets and plunging asset values resulted in
weak economic activity. Energy prices plunged as a result of the reduction in economic
activity, leading to the decline in the oil and gas exploration market throughout the
majority of the year. Similarly, as the flow of credit slowed and economic uncertainty
rose, the commercial construction markets suffered. Agricultural commodity prices also
fell sharply, resulting in a softening of the agricultural market. The impact of the
recession was felt across all of the divisions markets, with sales to the two largest
marketsenergy and constructiondecreasing approximately 40% and 25%, respectively.
    
    Sales volume and selling prices.Selling prices decreased approximately 16% and sales
volume, as measured by pounds shipped, fell 17% year-over-year. These negative trends
reflected market disruptions, competitive pricing pressures stemming from excess industry
capacity and lower resin costs due to relatively low natural gas prices.
    
    Cost containment.Management responded quickly and decisively to the freefall in
business activity experienced in the fourth quarter of fiscal 2009. The necessary steps
were taken to align the division with the weak business environment, by tightly managing
expenses and decreasing headcount.
    
    Margin preservation.Poor economic conditions, volatile material costs and
competitive pricing pressures squeezed margins. However, the impact of these factors was
more than offset by opportune purchases of prime grade resin and cost containments.
Consequently, gross margins increased from 16.1% to 20.4%.
    
    Selling expenses.Selling expenses increased to 3.8% of sales from 3.6% in the prior
year. Selling expenses of $2.4 million decreased 25% year-over-year, through reductions in
personnel and promotional expenses. However, this lagged the 29% drop in sales.
   
    
    Market stabilization.Sales and profit comparisons were favorable, as fourth quarter
fiscal 2009 financial results were deeply affected by the freefall in business activity.
    
    Sales volume.Higher sales for the quarter were largely volume driven. Greater
business activity and growth in emerging markets drove oil prices to levels adequate to
support an increase in drilling activity. As a result, fourth quarter sales of pit and
pond lining films to the oil and gas exploration markets rose 40% as distributors
replenished inventory levels.
    
    Margin expansion.Gross margins increased from 3.6% for last years fourth quarter to
18.5%. Last years margins were negatively affected by a sudden decrease in sales volume
on a relatively high-cost base and high-cost inventory.
 2010
ANNUAL REPORT RAVEN 23




---



##### 



Financial Review and Analysis (continued)
   
    
    Sales volume and selling prices.Sales increased due to higher volume coupled with a
modest increase in selling prices. Strong sales of pit and pond lining films to the oil
and gas market and higher agriculture sales were partially offset by a decline in sales to
the manufactured housing market.
    
    Margin contraction.Depressed margins reflected volatile material costs, increased
price competition and poor economic conditions. Competitive pricing pressuresespecially
in the construction markethindered the ability to pass on higher resin costs. This meant
production costs outpaced increases in selling prices. Gross margins decreased from 24.9%
in fiscal 2008 to 16.1% in fiscal 2009.
    
    Selling expenses.Fiscal 2009 selling expenses of $3.2 million were relatively flat
year-over-year.
 Electronic Systems
   %
    
    
    
    
    
    %Dollars in thousands
    
    2010
    
    change
    
    2009
    
    change
    
    2008Electronic SystemsNet sales
    
    $
    63,525
    
    
    
    2
    %
    
    $
    61,983
    
    
    
    (9
    )%
    
    $
    67,987Gross profit
    
    
    10,258
    
    
    
    42
    %
    
    
    7,218
    
    
    
    (38
    )%
    
    
    11,557Gross margins
    
    
    16.1
    %
    
    
    
    
    
    
    11.6
    %
    
    
    
    
    
    
    17.0
    %Operating income
    
    $
    8,979
    
    
    
    52
    %
    
    $
    5,926
    
    
    
    (43
    )%
    
    $
    10,365Operating margins
    
    
    14.1
    %
    
    
    
    
    
    
    9.6
    %
    
    
    
    
    
    
    15.2
    %
 
   
    
    Growth from existing customers.The 2% rise in sales was
attributable to higher deliveries of avionics (10%) and secure
communication electronics (20%) to meet increased demand from government
agencies and the aerospace market, partially offset by a smaller customer
base.
    
    Margin expansion.Gross margins expanded as a result of positive
operating leverage produced through increased sales to existing
customers, favorable product mix and cost controlssuch as headcount
reductions and facility consolidation.
    
    Selling expenses.Selling expenses of $1.2 million (1.8% of sales) were consistent
with the prior year.
   
    
    Secure communication electronics and avionics.Fourth quarter sales declined 14% due
to lower sales of secure communication electronics, reflecting lower demand from
government agencies, and slower avionics deliveries, as commercial airlines began
cancelling or delaying delivery schedules. Approximately 70% of avionics sales are related
to military aircraft, which mitigate the negative impact of disruptions on commercial
deliveries.
   
    
    Slower consumer spending.Hand-held bed control shipments were negatively affected by
lower consumer spending on non-essential home-related products, reflecting the influence
of financial uncertainty on consumer sentiment and a soft construction market.
    
    Loss of a customer.Fiscal 2008 results included $7 million of sales to a former
customer (which was acquired) and a profitable non-repeat close-out order.
 24 2010 ANNUAL REPORT RAVEN




---



##### 




    
    Increased sales of avionics.Strong sales of avionics partially offset the negative impact of
the factors mentioned earlier.
    
    Negative operating leverage.Gross margins suffered from negative operating leverage on lower
sales and a less favorable product mix. Fiscal 2009 third and fourth quarter operating
expenses were reduced by consolidating manufacturing space, which led to improved gross
margins in the second half of the year.
    
    Selling expenses.Selling expenses of $1.1 million (1.7% of sales) were consistent with the
prior year.
 Aerostar
   %
    
    
    
    
    
    %Dollars in thousands
    
    2010
    
    change
    
    2009
    
    change
    
    2008AerostarNet sales
    
    $
    27,244
    
    
    
    0
    %
    
    $
    27,186
    
    
    
    57
    %
    
    $
    17,290Gross profit
    
    
    6,632
    
    
    
    28
    %
    
    
    5,189
    
    
    
    121
    %
    
    
    2,343Gross margins
    
    
    24.3
    %
    
    
    
    
    
    
    19.1
    %
    
    
    
    
    
    
    13.6
    %Operating income
    
    $
    5,634
    
    
    
    34
    %
    
    $
    4,219
    
    
    
    180
    %
    
    $
    1,506Operating margins
    
    
    20.7
    %
    
    
    
    
    
    
    15.5
    %
    
    
    
    
    
    
    8.7
    %
 
    
    
    Sales volumes.Flat year-over-year sales reflected increased deliveries of MC-6 Army
parachutes, aerostats and research balloons, which were offset by decreased deliveries of
protective wear due to the completion of a large contract in January 2009. Fourth quarter
sales dropped 12% as fiscal 2009 fourth quarter results included nearly $3 million of MC-6
parachute deliveries that were delayed from the prior quarter due to contract
modifications.
    
    Margin expansion.The improvement in gross and operating margins came from increased
parachute manufacturing efficiencies. Final production runs and deliveries of the MC-6
parachute contract were made at the end of fiscal 2010. Fiscal 2010 was the most
profitable year for the program, primarily due to the higher efficiency level attained.
    
    Selling expenses.Selling expenses of $800,000 (2.9% of sales) were consistent with
the prior year.
   
    
    Government contracts.Shipments of protective wear and MC-6 parachutes increased
year-over-year. Deliveries under the $20.7 million MC-6 Army parachute and $6.5 million
protective wear contracts began in the fourth quarter of fiscal 2008.
    
    Positive operating leverage.Gross margins of 19.1% in fiscal 2009 compared favorably
with gross margins of 13.6% in fiscal 2008, bolstered by increased MC-6 Army parachute and
protective wear shipments.
    
    Selling expenses.Fiscal 2009 selling expenses of 3.1% of net sales compared
favorably with 4.1% of net sales in fiscal 2008. Selling expenses of $856,000 increased
22% year-over-year; however, the increase lagged the 57% rise in sales.
 2010
ANNUAL REPORT RAVEN 25




---



##### 



Financial Review and Analysis (continued)Corporate Expenses (administrative expenses, income taxes and interest income and other, net)
 Dollars in thousands
    
    2010
    
    2009
    
    2008Administrative expenses
    
    $
    7,407
    
    
    $
    8,502
    
    
    $
    7,467Administrative expenses as a % of sales
    
    
    3.1
    %
    
    
    3.0
    %
    
    
    3.2
    %Interest income and other, net
    
    $
    102
    
    
    $
    507
    
    
    $
    1,079Effective tax rate
    
    
    34.0
    %
    
    
    34.4
    %
    
    
    34.2
    %
 
    OUTLOOK
  Applied Technology
    Engineered Films
  TM TM
 Electronic Systems
  Aerostar
  26 2010 ANNUAL REPORT RAVEN




---



##### 



Corporate and other
  LIQUIDITY AND CAPITAL RESOURCES
     Operating Activities
     2010
ANNUAL REPORT RAVEN 27




---



##### 



Financial Review and Analysis (continued)
 Investing Activities
    
 Financing Activities
     OFF-BALANCE SHEET ARRANGEMENTS AND CONTRACTUAL OBLIGATIONS
  Less
    
    
    
    
    
    
    
    
    
    Morethan
    
    1-3
    
    3-5
    
    thanDollars in thousands
    
    Total
    
    1 year
    
    years
    
    years
    
    5 yearsContractual Obligations:Line of credit(a)
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Operating leases
    
    
    304
    
    
    
    234
    
    
    
    70
    
    
    
    
    
    
    
    Postretirement benefits
    
    
    5,512
    
    
    
    229
    
    
    
    528
    
    
    
    599
    
    
    
    4,156Unconditional purchase obligations
    
    
    42,359
    
    
    
    42,359
    
    
    
    
    
    
    
    
    
    
    
    Uncertain tax positions(b)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    48,175
    
    
    $
    42,822
    
    
    $
    598
    
    
    $
    599
    
    
    $
    4,156
 
 (a)
    
    $8.0 million line bears interest at 4.0% as of January 31, 2010, and expires
September 2010. The line of credit is reduced by outstanding letters of credit
totaling $1.3 million.(b)
    
    The total liability for uncertain tax positions at January 31, 2010, was
$3.5 million. The company is not able to reasonably estimate the timing of
future payments relating to non-current tax benefits. 
 CRITICAL ACCOUNTING ESTIMATES
  28 2010 ANNUAL REPORT RAVEN




---



##### 



Inventories
  
 Warranties
  Allowance for Doubtful Accounts
  Revenue Recognition
  Goodwill
    2010
ANNUAL REPORT RAVEN 29




---



##### 



Financial Review and Analysis (continued)
  Long-lived Assets
  Uncertain Tax Positions
  NEW ACCOUNTING STANDARDS
      30 2010 ANNUAL REPORT RAVEN




---



##### 



Monthly Closing Stock Price and Volume
 
 Quarterly Information (Unaudited)
 Gross Profit
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Net Income
    
    
    Common Stock
    
    
    CashDollars in thousands,
    
    Net
    
    
    As
    
    
    As
    
    
    Operating
    
    
    Pretax
    
    
    Net
    
    
    Per Share (b)
    
    
    Market Price
    
    
    Dividendsexcept per-share data
    
    Sales
    
    
    Reported
    
    
    Reclassified(a)
    
    
    Income
    
    
    Income
    
    
    Income
    
    
    Basic
    
    
    Diluted
    
    
    High
    
    
    Low
    
    
    Per ShareFISCAL 2010First Quarter
    
    $
    65,222
    
    
    $
    18,970
    
    
    $
    20,428
    
    
    $
    14,113
    
    
    $
    14,114
    
    
    $
    9,231
    
    
    $
    0.51
    
    
    $
    0.51
    
    
    $
    24.65
    
    
    $
    15.37
    
    
    $
    0.13Second Quarter
    
    
    56,586
    
    
    
    13,821
    
    
    
    15,112
    
    
    
    9,306
    
    
    
    9,411
    
    
    
    6,204
    
    
    
    0.34
    
    
    
    0.34
    
    
    
    31.00
    
    
    
    23.99
    
    
    
    0.14Third Quarter
    
    
    60,158
    
    
    
    15,510
    
    
    
    16,918
    
    
    
    11,119
    
    
    
    11,116
    
    
    
    7,293
    
    
    
    0.40
    
    
    
    0.40
    
    
    
    32.43
    
    
    
    24.47
    
    
    
    0.14Fourth Quarter
    
    
    55,816
    
    
    
    14,034
    
    
    
    15,394
    
    
    
    8,682
    
    
    
    8,681
    
    
    
    5,846
    
    
    
    0.32
    
    
    
    0.32
    
    
    
    33.18
    
    
    
    24.04
    
    
    
    0.14Total Year
    
    $
    237,782
    
    
    $
    62,335
    
    
    $
    67,852
    
    
    $
    43,220
    
    
    $
    43,322
    
    
    $
    28,574
    
    
    $
    1.58
    
    
    $
    1.58
    
    
    $
    33.18
    
    
    $
    15.37
    
    
    $
    0.55FISCAL 2009First Quarter
    
    $
    75,166
    
    
    $
    22,015
    
    
    $
    23,288
    
    
    $
    16,641
    
    
    $
    16,759
    
    
    $
    10,882
    
    
    $
    0.60
    
    
    $
    0.60
    
    
    $
    32.80
    
    
    $
    25.94
    
    
    $
    0.13Second Quarter
    
    
    69,278
    
    
    
    15,786
    
    
    
    17,197
    
    
    
    10,312
    
    
    
    10,488
    
    
    
    6,815
    
    
    
    0.38
    
    
    
    0.38
    
    
    
    39.50
    
    
    
    29.46
    
    
    
    0.13Third Quarter
    
    
    75,538
    
    
    
    18,001
    
    
    
    19,564
    
    
    
    12,371
    
    
    
    12,548
    
    
    
    8,385
    
    
    
    0.47
    
    
    
    0.46
    
    
    
    47.82
    
    
    
    25.79
    
    
    
    0.13Fourth Quarter
    
    
    59,931
    
    
    
    12,079
    
    
    
    13,399
    
    
    
    7,070
    
    
    
    7,106
    
    
    
    4,688
    
    
    
    0.26
    
    
    
    0.26
    
    
    
    33.24
    
    
    
    20.60
    
    
    
    1.38
    (c)Total Year
    
    $
    279,913
    
    
    $
    67,881
    
    
    $
    73,448
    
    
    $
    46,394
    
    
    $
    46,901
    
    
    $
    30,770
    
    
    $
    1.71
    
    
    $
    1.70
    
    
    $
    47.82
    
    
    $
    20.60
    
    
    $
    1.77FISCAL 2008First Quarter
    
    $
    58,103
    
    
    $
    17,374
    
    
    $
    18,400
    
    
    $
    12,838
    
    
    $
    13,025
    
    
    $
    8,540
    
    
    $
    0.41
    
    
    $
    0.47
    
    
    $
    30.84
    
    
    $
    26.20
    
    
    $
    0.11Second Quarter
    
    
    55,653
    
    
    
    13,407
    
    
    
    14,445
    
    
    
    8,543
    
    
    
    8,857
    
    
    
    5,843
    
    
    
    0.32
    
    
    
    0.32
    
    
    
    39.36
    
    
    
    28.39
    
    
    
    0.11Third Quarter
    
    
    61,842
    
    
    
    15,299
    
    
    
    16,504
    
    
    
    10,940
    
    
    
    11,254
    
    
    
    7,398
    
    
    
    0.41
    
    
    
    0.41
    
    
    
    45.85
    
    
    
    33.42
    
    
    
    0.11Fourth Quarter
    
    
    58,359
    
    
    
    13,068
    
    
    
    14,327
    
    
    
    8,824
    
    
    
    9,088
    
    
    
    6,021
    
    
    
    0.33
    
    
    
    0.33
    
    
    
    42.75
    
    
    
    27.57
    
    
    
    0.11Total Year
    
    $
    233,957
    
    
    $
    59,148
    
    
    $
    63,676
    
    
    $
    41,145
    
    
    $
    42,224
    
    
    $
    27,802
    
    
    $
    1.54
    
    
    $
    1.53
    
    
    $
    45.85
    
    
    $
    26.20
    
    
    $
    0.44
 
 (a)
    
    All quarters reflect the reclassification of R&D
expense from cost of goods sold. (See Note 1.)(b)
    
    Net income per share is computed discretely by
quarter and may not add to the full year.(c)
    
    A special dividend of $1.25 per share was paid during
the fourth quarter of fiscal 2009. 2010
ANNUAL REPORT RAVEN 31




---



##### 



Managements Report on Internal Control Over Financial Reporting
   Internal ControlIntegrated Framework
  (GRAPHIC)
    
    
    
    (GRAPHIC)Ronald M. Moquist
    
    
    
    Thomas IacarellaPresident & Chief Executive Officer
    
    
    
    Vice President & Chief Financial OfficerMarch 31, 2010
 32 2010 ANNUAL REPORT RAVEN




---



##### 



Consolidated Balance Sheets
 As of January 31Dollars in thousands, except per-share data
    
    2010
    
    2009
    
    2008ASSETSCurrent assetsCash and cash equivalents
    
    $
    40,684
    
    
    $
    16,267
    
    
    $
    21,272Short-term investments
    
    
    3,000
    
    
    
    
    
    
    
    1,500Accounts receivable, net
    
    
    34,327
    
    
    
    40,278
    
    
    
    36,538Inventories
    
    
    34,475
    
    
    
    35,977
    
    
    
    36,529Deferred income taxes
    
    
    2,471
    
    
    
    2,542
    
    
    
    2,075Other current assets
    
    
    2,790
    
    
    
    3,009
    
    
    
    2,955Total current assets
    
    
    117,747
    
    
    
    98,073
    
    
    
    100,869Property, plant and equipment, net
    
    
    33,029
    
    
    
    35,880
    
    
    
    35,743Goodwill
    
    
    10,699
    
    
    
    7,450
    
    
    
    6,902Other assets, net
    
    
    8,834
    
    
    
    3,012
    
    
    
    4,347Total assets
    
    $
    170,309
    
    
    $
    144,415
    
    
    $
    147,861LIABILITIES AND SHAREHOLDERS EQUITYCurrent liabilitiesAccounts payable
    
    $
    12,398
    
    
    $
    9,433
    
    
    $
    8,374Accrued liabilities
    
    
    12,256
    
    
    
    13,281
    
    
    
    12,804Customer advances
    
    
    1,306
    
    
    
    608
    
    
    
    930Total current liabilities
    
    
    25,960
    
    
    
    23,322
    
    
    
    22,108Other liabilities
    
    
    11,098
    
    
    
    7,537
    
    
    
    7,478Commitments and contingenciesShareholders equity
    
    
    133,251
    
    
    
    113,556
    
    
    
    118,275Common
shares, par value $1.00 per share
Authorized100,000,000
Outstanding2010: 18,029,733; 2009: 18,012,251
2008: 18,120,513Total liabilities and shareholders equity
    
    $
    170,309
    
    
    $
    144,415
    
    
    $
    147,861
 The accompanying notes are an integral part of the consolidated financial statements.
 2010
ANNUAL REPORT RAVEN 33




---



##### 



Consolidated Statements of Income
 For the years ended January 31Dollars in thousands, except per-share data
    
    2010
    
    2009
    
    2008Net sales
    
    $
    237,782
    
    
    $
    279,913
    
    
    $
    233,957Cost of goods sold
    
    
    169,930
    
    
    
    206,465
    
    
    
    170,281Gross profit
    
    
    67,852
    
    
    
    73,448
    
    
    
    63,676Research and development expenses
    
    
    5,843
    
    
    
    5,848
    
    
    
    4,925Selling, general and administrative expenses
    
    
    18,789
    
    
    
    21,206
    
    
    
    17,606Operating income
    
    
    43,220
    
    
    
    46,394
    
    
    
    41,145Interest income and other, net
    
    
    (102
    )
    
    
    (507
    )
    
    
    (1,079
    )Income before income taxes
    
    
    43,322
    
    
    
    46,901
    
    
    
    42,224Income taxes
    
    
    14,748
    
    
    
    16,131
    
    
    
    14,422Net income
    
    $
    28,574
    
    
    $
    30,770
    
    
    $
    27,802Net income per common share:Basic
    
    $
    1.58
    
    
    $
    1.71
    
    
    $
    1.54Diluted
    
    $
    1.58
    
    
    $
    1.70
    
    
    $
    1.53
 The accompanying notes are an integral part of the consolidated financial statements.
 34 2010 ANNUAL REPORT RAVEN




---



##### 



Consolidated Statements of Shareholders
Equity and Comprehensive Income
 Accumulated$1 Par
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    othercommon
    
    
    Paid-in
    
    
    Treasury stock
    
    
    Retained
    
    
    comprehensiveDollars in thousands, except per-share data
    
    stock
    
    
    capital
    
    
    Shares
    
    
    Cost
    
    
    earnings
    
    
    income (loss)
    
    
    TotalBalance January 31, 2007
    
    $
    32,307
    
    
    $
    2,341
    
    
    
    (14,267,433
    )
    
    $
    (47,590
    )
    
    $
    113,103
    
    
    $
    (1,893
    )
    
    $
    98,268Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    27,802
    
    
    
    
    
    
    
    27,802Postretirement benefits, net of $84 income tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    156
    
    
    
    156Foreign currency translation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    131
    
    
    
    131Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    28,089Change in accounting for uncertain tax positions
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (716
    )
    
    
    
    
    
    
    (716
    )Dividends ( $.44 per share)
    
    
    
    
    
    
    4
    
    
    
    
    
    
    
    
    
    
    
    (7,970
    )
    
    
    
    
    
    
    (7,966
    )Purchase of stock
    
    
    
    
    
    
    
    
    
    
    (20,150
    )
    
    
    (592
    )
    
    
    
    
    
    
    
    
    
    
    (592
    )Stock surrendered upon exercise of stock options
    
    
    (47
    )
    
    
    (1,462
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,509
    )Employees stock options exercised
    
    
    148
    
    
    
    1,170
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,318Share-based compensation
    
    
    
    
    
    
    904
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    904Tax benefit from exercise of stock options
    
    
    
    
    
    
    479
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    479Balance January 31, 2008
    
    
    32,408
    
    
    
    3,436
    
    
    
    (14,287,583
    )
    
    
    (48,182
    )
    
    
    132,219
    
    
    
    (1,606
    )
    
    
    118,275Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    30,770
    
    
    
    
    
    
    
    30,770Postretirement benefits, net of $375 income tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    698
    
    
    
    698Foreign currency translation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (246
    )
    
    
    (246
    )Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    31,222Dividends ($.52 per share)
    
    
    
    
    
    
    7
    
    
    
    
    
    
    
    
    
    
    
    (9,381
    )
    
    
    
    
    
    
    (9,374
    )Dividends (special$1.25 per share)
    
    
    
    
    
    
    18
    
    
    
    
    
    
    
    
    
    
    
    (22,528
    )
    
    
    
    
    
    
    (22,510
    )Purchase of stock
    
    
    
    
    
    
    
    
    
    
    (161,100
    )
    
    
    (5,180
    )
    
    
    
    
    
    
    
    
    
    
    (5,180
    )Stock surrendered upon exercise of stock options
    
    
    (34
    )
    
    
    (1,258
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,292
    )Employees stock options exercised
    
    
    83
    
    
    
    1,176
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,259Share-based compensation
    
    
    4
    
    
    
    1,024
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,028Tax benefit from exercise of stock options
    
    
    
    
    
    
    128
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    128Balance January 31, 2009
    
    
    32,461
    
    
    
    4,531
    
    
    
    (14,448,683
    )
    
    
    (53,362
    )
    
    
    131,080
    
    
    
    (1,154
    )
    
    
    113,556Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    28,574
    
    
    
    
    
    
    
    28,574Postretirement benefits,
net of ($122) income tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (226
    )
    
    
    (226
    )Foreign currency translation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    179
    
    
    
    179Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    28,527Dividends ( $.55 per share)
    
    
    
    
    
    
    11
    
    
    
    
    
    
    
    
    
    
    
    (9,922
    )
    
    
    
    
    
    
    (9,911
    )Stock surrendered upon exercise of stock options
    
    
    (51
    )
    
    
    (1,319
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,370
    )Employees stock options exercised
    
    
    65
    
    
    
    1,374
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,439Share-based compensation
    
    
    3
    
    
    
    1,031
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,034Tax cost from exercise of stock options
    
    
    
    
    
    
    (24
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (24
    )Balance January 31, 2010
    
    $
    32,478
    
    
    $
    5,604
    
    
    
    (14,448,683
    )
    
    $
    (53,362
    )
    
    $
    149,732
    
    
    $
    (1,201
    )
    
    $
    133,251
 
 The accompanying notes are an integral part of the consolidated financial statements. 2010
ANNUAL REPORT RAVEN 35




---



##### 



Consolidated Statements of Cash Flows
 For the years ended January 31Dollars in thousands
    
    2010
    
    
    2009
    
    
    2008Cash flows from operating activities:Net income
    
    $
    28,574
    
    
    $
    30,770
    
    
    $
    27,802Adjustments to reconcile net income to net cash provided by operating activities:Depreciation
    
    
    6,611
    
    
    
    7,345
    
    
    
    6,944Amortization of intangible assets
    
    
    497
    
    
    
    413
    
    
    
    400Change in fair value of acquisition-related contingent consideration
    
    
    94
    
    
    
    
    
    
    
    Provision for losses on accounts receivable, net of recoveries
    
    
    (183
    )
    
    
    629
    
    
    
    91Deferred income taxes
    
    
    95
    
    
    
    216
    
    
    
    (779
    )Share-based compensation expense
    
    
    1,034
    
    
    
    1,028
    
    
    
    904Change in operating assets and liabilities
    
    
    10,935
    
    
    
    (1,346
    )
    
    
    (8,187
    )Other operating activities, net
    
    
    (14
    )
    
    
    (18
    )
    
    
    (24
    )Net cash provided by operating activities
    
    
    47,643
    
    
    
    39,037
    
    
    
    27,151Cash flows from investing activities:Capital expenditures
    
    
    (3,302
    )
    
    
    (8,001
    )
    
    
    (6,635
    )Purchases of short-term investments
    
    
    (3,500
    )
    
    
    (2,100
    )
    
    
    (3,100
    )Sales of short-term investments
    
    
    500
    
    
    
    3,600
    
    
    
    5,600Purchase of equity investment
    
    
    (5,000
    )
    
    
    
    
    
    
    Payments related to business acquisitions
    
    
    (2,000
    )
    
    
    (488
    )
    
    
    (269
    )Other investing activities, net
    
    
    (94
    )
    
    
    (11
    )
    
    
    (29
    )Net cash used in investing activities
    
    
    (13,396
    )
    
    
    (7,000
    )
    
    
    (4,433
    )Cash flows from financing activities:Dividends paid
    
    
    (9,911
    )
    
    
    (31,884
    )
    
    
    (7,966
    )Purchases of treasury stock
    
    
    
    
    
    
    (5,180
    )
    
    
    (592
    )Excess tax benefit on stock option exercises
    
    
    
    
    
    
    128
    
    
    
    479Other financing activities, net
    
    
    44
    
    
    
    (33
    )
    
    
    (191
    )Net cash used in financing activities
    
    
    (9,867
    )
    
    
    (36,969
    )
    
    
    (8,270
    )Effect of exchange rate changes on cash
    
    
    37
    
    
    
    (73
    )
    
    
    41Net increase (decrease) in cash and cash equivalents
    
    
    24,417
    
    
    
    (5,005
    )
    
    
    14,489Cash and cash equivalents at beginning of year
    
    
    16,267
    
    
    
    21,272
    
    
    
    6,783Cash and cash equivalents at end of year
    
    $
    40,684
    
    
    $
    16,267
    
    
    $
    21,272
 The accompanying notes are an integral part of the consolidated financial statements.
 36 2010 ANNUAL REPORT RAVEN




---



##### 



Notes to Financial Statements
 Note 1. Summary of Significant Accounting Policies
 BASIS OF PRESENTATION AND PRINCIPLES OF
CONSOLIDATION
   INVESTMENT IN AFFILIATE
  USE OF ESTIMATES
  FOREIGN CURRENCY
  CASH AND CASH EQUIVALENTS
  ACCOUNTS RECEIVABLE AND ALLOWANCE FOR
DOUBTFUL ACCOUNTS
  INVENTORY VALUATION
  PROPERTY, PLANT AND EQUIPMENT
  Building and improvements
    
    15  39 yearsManufacturing equipment by segmentApplied Technology.
    
    3  5 yearsEngineered Films
    
    5  12 yearsElectronic Systems
    
    3  5 yearsAerostar
    
    3  5 yearsFurniture, fixtures, office equipment and other
    
    3  7 years
   2010
ANNUAL REPORT RAVEN 37




---



##### 



Notes to Financial Statements (continued)
  INTANGIBLE ASSETS
  GOODWILL
  LONG-LIVED ASSETS
  INSURANCE OBLIGATIONS
  CONTINGENCIES
   REVENUE RECOGNITION
  OPERATING EXPENSES
  Research and
    
    Selling, general andCost of goods sold
    
    development expenses
    
    administrative expensesDirect material costs
    
    Personnel costs
    
    Personnel costsMaterial acquisition and
    
    Professional service fees
    
    Professional service feeshandling costs
    
    Material and supplies
    
    AdvertisingDirect labor
    
    Facility allocation
    
    PromotionsFactory overhead
    
    
    
    Information technologyincluding depreciation
    
    
    

equipment
depreciationInventory obsolescence
    
    
    
    Office suppliesProduct warranties
  38 2010 ANNUAL REPORT RAVEN




---



##### 



For the year ended
    
    For the year endedJanuary 31, 2009
    
    January 31, 2008As
    
    
    As
    
    
    As
    
    
    AsDollars in thousands
    
    reported
    
    
    reclassified
    
    
    reported
    
    
    reclassifiedNet sales
    
    $
    279,913
    
    
    $
    279,913
    
    
    $
    233,957
    
    
    $
    233,957Cost of goods sold
    
    
    212,032
    
    
    
    206,465
    
    
    
    174,809
    
    
    
    170,281Gross profit
    
    
    67,881
    
    
    
    73,448
    
    
    
    59,148
    
    
    
    63,676Gross margins
    
    
    24.3
    %
    
    
    26.2
    %
    
    
    25.3
    %
    
    
    27.2
    %Research and development
expenses
    
    
    
    
    
    
    5,848
    
    
    
    
    
    
    
    4,925Selling, general and
administrative expenses
    
    
    21,487
    
    
    
    21,206
    
    
    
    18,003
    
    
    
    17,606Operating income
    
    $
    46,394
    
    
    $
    46,394
    
    
    $
    41,145
    
    
    $
    41,145
  WARRANTIES
  SHARE-BASED COMPENSATION
  INCOME TAXES
  NEW ACCOUNTING STANDARDS
      2010
ANNUAL REPORT RAVEN 39




---



##### 



Notes to Financial Statements (continued)
  Note 2. Selected Balance Sheet Information
  As of January 31Dollars in thousands
    
    2010
    
    2009
    
    2008Accounts receivable, net:Trade accounts
    
    $
    34,624
    
    
    $
    40,891
    
    
    $
    36,831Allowance for doubtful accounts
    
    
    (297
    )
    
    
    (613
    )
    
    
    (293
    )$
    34,327
    
    
    $
    40,278
    
    
    $
    36,538Inventories:Finished goods
    
    $
    6,283
    
    
    $
    6,062
    
    
    $
    4,975In process
    
    
    4,172
    
    
    
    3,258
    
    
    
    3,631Materials
    
    
    24,020
    
    
    
    26,657
    
    
    
    27,923$
    34,475
    
    
    $
    35,977
    
    
    $
    36,529Other current assets:Insurance policy benefit
    
    $
    2,300
    
    
    $
    2,119
    
    
    $
    2,549Prepaid expenses and other
    
    
    490
    
    
    
    890
    
    
    
    406$
    2,790
    
    
    $
    3,009
    
    
    $
    2,955Property, plant and equipment, net:Land
    
    $
    1,227
    
    
    $
    1,227
    
    
    $
    1,227Buildings and improvements
    
    
    22,973
    
    
    
    22,593
    
    
    
    21,523Machinery and equipment
    
    
    64,119
    
    
    
    62,504
    
    
    
    57,563Accumulated depreciation
    
    
    (55,290
    )
    
    
    (50,444
    )
    
    
    (44,570
    )$
    33,029
    
    
    $
    35,880
    
    
    $
    35,743Other assets, net:Amortizable assets:Purchased technology
    
    $
    3,200
    
    
    $
    2,300
    
    
    $
    2,300Other intangibles
    
    
    1,633
    
    
    
    1,314
    
    
    
    1,172Accumulated amortization
    
    
    (2,648
    )
    
    
    (2,143
    )
    
    
    (1,740
    )2,185
    
    
    
    1,471
    
    
    
    1,732Investment in affiliate
    
    
    5,010
    
    
    
    
    
    
    
    Deferred income taxes
    
    
    1,580
    
    
    
    1,482
    
    
    
    2,540Other, net
    
    
    59
    
    
    
    59
    
    
    
    75$
    8,834
    
    
    $
    3,012
    
    
    $
    4,347Accrued liabilities:Salaries and benefits
    
    $
    1,148
    
    
    $
    1,891
    
    
    $
    2,109Vacation
    
    
    2,693
    
    
    
    2,581
    
    
    
    2,415401(k) contributions
    
    
    180
    
    
    
    1,333
    
    
    
    1,184Insurance obligations
    
    
    3,959
    
    
    
    3,615
    
    
    
    4,010Profit sharing
    
    
    217
    
    
    
    436
    
    
    
    490Warranties
    
    
    1,259
    
    
    
    1,004
    
    
    
    684Taxesaccrued and withheld
    
    
    1,574
    
    
    
    1,266
    
    
    
    1,061Other
    
    
    1,226
    
    
    
    1,155
    
    
    
    851$
    12,256
    
    
    $
    13,281
    
    
    $
    12,804Other liabilities:Postretirement benefits
    
    $
    5,283
    
    
    $
    4,637
    
    
    $
    5,246Acquisition-related contingent consideration
    
    
    2,301
    
    
    
    
    
    
    
    Uncertain tax positions
    
    
    3,514
    
    
    
    2,900
    
    
    
    2,232$
    11,098
    
    
    $
    7,537
    
    
    $
    7,478
 Note 3. Accumulated Other Comprehensive
Income (Loss)
  As of January 31Dollars in thousands
    
    2010
    
    2009
    
    2008Foreign currency translation
    
    $
    56
    
    
    $
    (123
    )
    
    $
    123Post-retirement benefits
    
    
    (1,257
    )
    
    
    (1,031
    )
    
    
    (1,729
    )Total accumulated other comprehensive loss
    
    $
    (1,201
    )
    
    $
    (1,154
    )
    
    $
    (1,606
    )
 Note 4. Supplemental Cash Flow Information
 For the years ended January 31Dollars in thousands
    
    2010
    
    2009
    
    2008Changes in operating assets and liabilities:Accounts receivable
    
    $
    6,325
    
    
    $
    (4,603
    )
    
    $
    (5,216
    )Inventories
    
    
    1,552
    
    
    
    447
    
    
    
    (8,403
    )Prepaid expenses and other assets
    
    
    (49
    )
    
    
    (35
    )
    
    
    218Accounts payable
    
    
    2,934
    
    
    
    963
    
    
    
    2,437Accrued and other liabilities
    
    
    (520
    )
    
    
    2,194
    
    
    
    2,648Customer advances
    
    
    693
    
    
    
    (312
    )
    
    
    129$
    10,935
    
    
    $
    (1,346
    )
    
    $
    (8,187
    )Cash paid during the year for income taxes
    
    $
    13,816
    
    
    $
    15,072
    
    
    $
    14,068
 Note 5. Acquisition of and
Investments in Businesses and
Technologies
   40 2010 ANNUAL REPORT RAVEN




---



##### 



Dollars in thousandsGoodwill
    
    $
    2,734Existing technology
    
    
    900Other intangibles
    
    
    175Total
    
    $
    3,809
   Note 6. Goodwill and Other Intangibles
 Goodwill
  Applied
    
    Engineered
    
    ElectronicDollars in thousands
    
    Technology
    
    Films
    
    Systems
    
    Aerostar
    
    TotalBalance at January 31, 2007
    
    $
    5,611
    
    
    $
    96
    
    
    $
    433
    
    
    $
    464
    
    
    $
    6,604Acquisition earn-outs
    
    
    298
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    298Balance at January 31, 2008
    
    
    5,909
    
    
    
    96
    
    
    
    433
    
    
    
    464
    
    
    
    6,902Acquisition earn-outs
    
    
    548
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    548Balance at January 31, 2009
    
    
    6,457
    
    
    
    96
    
    
    
    433
    
    
    
    464
    
    
    
    7,450Goodwill acquired during the year
    
    
    2,734
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,734Acquisition earn-outs
    
    
    515
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    515Balance at January 31, 2010
    
    $
    9,706
    
    
    $
    96
    
    
    $
    433
    
    
    $
    464
    
    
    $
    10,699
 Intangible Assets
  Note 7. Employee Retirement Benefits
    For the years ended January 31Dollars in thousands
    
    2010
    
    2009
    
    2008Benefit obligation at beginning of year
    
    $
    4,840
    
    
    $
    5,447
    
    
    $
    5,213Service cost
    
    
    55
    
    
    
    67
    
    
    
    90Interest cost
    
    
    332
    
    
    
    361
    
    
    
    307Actuarial (gain) loss and assumption changes
    
    
    476
    
    
    
    (847
    )
    
    
    (2
    )Total recognized in net and other comprehensive
income
    
    
    863
    
    
    
    (419
    )
    
    
    395Retiree benefits paid
    
    
    (191
    )
    
    
    (188
    )
    
    
    (161
    )Benefit obligation at end of year
    
    $
    5,512
    
    
    $
    4,840
    
    
    $
    5,447
  For the years ended January 31Dollars in thousands
    
    2010
    
    2009
    
    2008Beginning liability balance
    
    $
    4,840
    
    
    $
    5,447
    
    
    $
    5,213Employer expense
    
    
    515
    
    
    
    654
    
    
    
    635Other comprehensive (income) loss
    
    
    348
    
    
    
    (1,073
    )
    
    
    (240
    )Total recognized in net and other
comprehensive income
    
    
    863
    
    
    
    (419
    )
    
    
    395Retiree benefits paid
    
    
    (191
    )
    
    
    (188
    )
    
    
    (161
    )Ending liability balance
    
    
    5,512
    
    
    
    4,840
    
    
    
    5,447Current portion
    
    
    (229
    )
    
    
    (203
    )
    
    
    (201
    )Long-term portion
    
    $
    5,283
    
    
    $
    4,637
    
    
    $
    5,246Assumptions used:Discount rate
    
    
    6.00
    %
    
    
    7.00
    %
    
    
    6.75
    %Wage inflation rate
    
    
    3.00
    %
    
    
    3.00
    %
    
    
    4.00
    %
   2010
ANNUAL REPORT RAVEN 41




---



##### 



Notes to Financial Statements (continued)
 Note 8. Warranties
  As of January 31Dollars in thousands
    
    2010
    
    2009
    
    2008Beginning balance
    
    $
    1,004
    
    
    $
    684
    
    
    $
    397Accrual for warranties
    
    
    2,426
    
    
    
    2,760
    
    
    
    1,390Settlements made (in cash or in kind)
    
    
    (2,171
    )
    
    
    (2,440
    )
    
    
    (1,103
    )Ending balance
    
    $
    1,259
    
    
    $
    1,004
    
    
    $
    684
 Note 9. Income Taxes
  For the years ended January 312010
    
    2009
    
    2008Tax at U.S. federal statutory rate
    
    
    35.0
    %
    
    
    35.0
    %
    
    
    35.0
    %State and local income taxes, net of U.S. federal
benefit
    
    
    1.3
    
    
    
    1.5
    
    
    
    1.5Tax benefit on qualified production activities
    
    
    (2.1
    )
    
    
    (2.0
    )
    
    
    (2.1
    )Tax credit for research activities
    
    
    (0.7
    )
    
    
    (0.7
    )
    
    
    (0.7
    )Other, net
    
    
    0.5
    
    
    
    0.6
    
    
    
    0.534.0
    %
    
    
    34.4
    %
    
    
    34.2
    %
  For the years ended January 31Dollars in thousands
    
    2010
    
    2009
    
    2008Income taxes:Currently payable
    
    $
    14,653
    
    
    $
    15,915
    
    
    $
    15,201Deferred
    
    
    95
    
    
    
    216
    
    
    
    (779
    )$
    14,748
    
    
    $
    16,131
    
    
    $
    14,422
 Deferred Tax Assets
   As of January 31Dollars in thousands
    
    2010
    
    2009
    
    2008Current deferred tax assets:Accounts receivable
    
    $
    103
    
    
    $
    211
    
    
    $
    105Inventories
    
    
    344
    
    
    
    408
    
    
    
    271Accrued vacation
    
    
    857
    
    
    
    840
    
    
    
    781Insurance obligations
    
    
    553
    
    
    
    489
    
    
    
    456Warranty obligations
    
    
    441
    
    
    
    352
    
    
    
    225Other accrued liabilities
    
    
    173
    
    
    
    242
    
    
    
    2372,471
    
    
    
    2,542
    
    
    
    2,075Non-current deferred tax assets (liabilities):Postretirement benefits
    
    
    1,849
    
    
    
    1,623
    
    
    
    1,836Depreciation and amortization
    
    
    (1,970
    )
    
    
    (1,556
    )
    
    
    (478
    )Uncertain tax positions
    
    
    1,180
    
    
    
    969
    
    
    
    741Other
    
    
    521
    
    
    
    446
    
    
    
    4411,580
    
    
    
    1,482
    
    
    
    2,540Net deferred tax asset
    
    $
    4,051
    
    
    $
    4,024
    
    
    $
    4,615
  Uncertain Tax Positions
   For the years ended January 31Dollars in thousands
    
    2010
    
    2009
    
    2008Gross unrecognized tax benefits at beginning of
year
    
    $
    2,269
    
    
    $
    1,793
    
    
    $
    1,328Increases in tax positions related to the current
year
    
    
    463
    
    
    
    539
    
    
    
    465Decreases as a result of a lapse in applicable
statute of limitations
    
    
    (76
    )
    
    
    (63
    )
    
    
    Gross unrecognized tax benefits at end of
year
    
    $
    2,656
    
    
    $
    2,269
    
    
    $
    1,793
   42 2010 ANNUAL REPORT RAVEN




---



##### 



Note 10. Financing Arrangements
    Note 11. Share-based Compensation
  2000 Stock Option and Compensation Plan
   For the years ended January 312010
    
    2009
    
    2008Risk-free interest rate
    
    
    2.03
    %
    
    
    1.64
    %
    
    
    3.07
    %Expected dividend yield
    
    
    1.73
    %
    
    
    2.12
    %
    
    
    1.28
    %Expected volatility factor
    
    
    49.69
    %
    
    
    46.32
    %
    
    
    40.62
    %Expected option term (in years)
    
    
    4.50
    
    
    
    4.25
    
    
    
    4.25Weighted average grant date fair value
    
    $
    11.28
    
    
    $
    8.08
    
    
    $
    11.45
  WeightedaverageWeighted
    
    Aggregate
    
    remainingaverage
    
    intrinsic
    
    contractualNumber
    
    exercise
    
    value
    
    termof options
    
    price
    
    (in thousands)
    
    (years)Outstanding at beginning of
year
    
    
    382,975
    
    
    $
    27.93Granted
    
    
    81,200
    
    
    
    30.05Exercised
    
    
    (65,225
    )
    
    
    22.06Forfeited
    
    
    (2,400
    )
    
    
    27.24Outstanding at end of
year
    
    
    396,550
    
    
    $
    29.33
    
    
    $
    428
    
    
    
    2.85Options exercisable at end of
year
    
    
    187,963
    
    
    $
    29.96
    
    
    $
    129
    
    
    
    1.83
  2010
ANNUAL REPORT RAVEN 43




---



##### 



Notes to Financial Statements (continued)
 Deferred Stock Compensation Plan for Directors
    WeightedNumber
    
    
    averageof units
    
    
    priceOutstanding at beginning of year
    
    
    15,107
    
    
    $
    21.81Granted
    
    
    4,996
    
    
    
    28.02Deferred retainers
    
    
    714
    
    
    
    28.02Dividends
    
    
    409
    
    
    
    26.44Converted into common shares
    
    
    
    
    
    
    Outstanding at end of year
    
    
    21,226
    
    
    $
    28.58
 Note 12. Net Income per Share
  For the years ended January 312010
    
    
    2009
    
    
    2008Numerator:Net income (in thousands)
    
    $
    28,574
    
    
    $
    30,770
    
    
    $
    27,802Denominator:Weighted average common
shares outstanding
    
    
    18,020,552
    
    
    
    18,031,020
    
    
    
    18,099,600Weighted average stock units
outstanding
    
    
    19,580
    
    
    
    13,451
    
    
    
    8,580Denominator for basic
calculation
    
    
    18,040,132
    
    
    
    18,044,471
    
    
    
    18,108,180Weighted average common
shares outstanding
    
    
    18,020,552
    
    
    
    18,031,020
    
    
    
    18,099,600Weighted average stock units
outstanding
    
    
    19,580
    
    
    
    13,451
    
    
    
    8,580Dilutive impact of stock options
    
    
    3,304
    
    
    
    35,771
    
    
    
    95,883Denominator for diluted
calculation
    
    
    18,043,436
    
    
    
    18,080,242
    
    
    
    18,204,063Net income per sharebasic
    
    $
    1.58
    
    
    $
    1.71
    
    
    $
    1.54Net income per sharediluted
    
    $
    1.58
    
    
    $
    1.70
    
    
    $
    1.53
 Note 13. Business Segments and Major Customer Information
    2010
ANNUAL REPORT RAVEN 44




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##### 



For the years ended January 31Dollars in thousands
    
    2010
    
    
    2009
    
    
    2008APPLIED TECHNOLOGY DIVISIONSales
    
    $
    86,217
    
    
    $
    103,098
    
    
    $
    64,291Operating income
    
    
    25,722
    
    
    
    33,884
    
    
    
    19,102Assets
    
    
    51,029
    
    
    
    48,881
    
    
    
    36,938Capital expenditures
    
    
    941
    
    
    
    2,674
    
    
    
    1,008Depreciation and amortization
    
    
    1,677
    
    
    
    1,383
    
    
    
    1,125ENGINEERED FILMS DIVISIONSales
    
    $
    63,783
    
    
    $
    89,858
    
    
    $
    85,316Operating income
    
    
    10,232
    
    
    
    10,919
    
    
    
    17,739Assets
    
    
    35,999
    
    
    
    35,862
    
    
    
    43,688Capital expenditures
    
    
    1,460
    
    
    
    3,120
    
    
    
    4,012Depreciation and amortization
    
    
    3,707
    
    
    
    4,303
    
    
    
    4,046ELECTRONIC SYSTEMS DIVISIONSales
    
    $
    63,525
    
    
    $
    61,983
    
    
    $
    67,987Operating income
    
    
    8,979
    
    
    
    5,926
    
    
    
    10,365Assets
    
    
    21,216
    
    
    
    26,847
    
    
    
    25,865Capital expenditures
    
    
    290
    
    
    
    1,399
    
    
    
    1,077Depreciation and amortization
    
    
    939
    
    
    
    1,159
    
    
    
    1,237AEROSTARSales
    
    $
    27,244
    
    
    $
    27,186
    
    
    $
    17,290Operating income
    
    
    5,634
    
    
    
    4,219
    
    
    
    1,506Assets
    
    
    10,462
    
    
    
    8,744
    
    
    
    9,941Capital expenditures
    
    
    332
    
    
    
    383
    
    
    
    156Depreciation and amortization
    
    
    398
    
    
    
    444
    
    
    
    499INTERSEGMENT ELIMINATIONSSalesEngineered Films Division
    
    $
    (210
    )
    
    $
    (210
    )
    
    $
    (533
    )Electronic Systems Division
    
    
    (2,776
    )
    
    
    (1,977
    )
    
    
    (378
    )Aerostar
    
    
    (1
    )
    
    
    (25
    )
    
    
    (16
    )Operating income
    
    
    60
    
    
    
    (52
    )
    
    
    (100
    )Assets
    
    
    (92
    )
    
    
    (152
    )
    
    
    (100
    )REPORTABLE SEGMENTS TOTALSales
    
    $
    237,782
    
    
    $
    279,913
    
    
    $
    233,957Operating income
    
    
    50,627
    
    
    
    54,896
    
    
    
    48,612Assets
    
    
    118,614
    
    
    
    120,182
    
    
    
    116,332Capital expenditures
    
    
    3,023
    
    
    
    7,576
    
    
    
    6,253Depreciation and amortization
    
    
    6,721
    
    
    
    7,289
    
    
    
    6,907CORPORATE & OTHER(a)Operating (loss) from administrative
expenses
    
    $
    (7,407
    )
    
    $
    (8,502
    )
    
    $
    (7,467
    )Assets
    
    
    51,695
    
    
    
    24,233
    
    
    
    31,529Capital expenditures
    
    
    279
    
    
    
    425
    
    
    
    382Depreciation and amortization
    
    
    387
    
    
    
    469
    
    
    
    437TOTAL COMPANYSales
    
    $
    237,782
    
    
    $
    279,913
    
    
    $
    233,957Operating income
    
    
    43,220
    
    
    
    46,394
    
    
    
    41,145Assets
    
    
    170,309
    
    
    
    144,415
    
    
    
    147,861Capital expenditures
    
    
    3,302
    
    
    
    8,001
    
    
    
    6,635Depreciation and amortization
    
    
    7,108
    
    
    
    7,758
    
    
    
    7,344
 
 (a)
    
    Assets are principally cash, investments, deferred taxes and other receivables.   For the years ended January 31Dollars in thousands
    
    2010
    
    
    2009
    
    
    2008Applied Technology
    
    $
    17,140
    
    
    $
    18,847
    
    
    $
    10,104Engineered Films
    
    
    1,383
    
    
    
    2,034
    
    
    
    1,803Electronic Systems
    
    
    495
    
    
    
    568
    
    
    
    6,852Aerostar
    
    
    1,219
    
    
    
    1,004
    
    
    
    1,310Total foreign sales
    
    $
    20,237
    
    
    $
    22,453
    
    
    $
    20,069
 2010
ANNUAL REPORT RAVEN 45




---



##### 



Report of Independent Registered Public
Accounting Firm
  Internal ControlIntegrated Framework
    
 
 2010
ANNUAL REPORT RAVEN 46




---



##### 



Investor Information
 Annual Meeting
 Dividend Reinvestment Plan
  Dividend Policy
  Raven Website
 Independent Registered Public
Accounting Firm
 Stock Quotations
 Stock Transfer Agent & Registrar
 Form 10-K
  Affirmative Action Plan
  Inquiries
 Adding Value for Shareholders
 Raven stock continues to
outperform its industrial
peers and the overall
market in shareholder
return. Investors who
bought $100 of the
companys stock on January
31, 2005, held this for
five years and reinvested
the dividends, have seen
its value increase to
$174.24. This 12%
cumulative growth rate
outpaced the S&P 1500
Industrial Indexs minor
loss (at $99.59) and the
Russell 2000s slight gain
(to $103.25).
 
 FORWARD-LOOKING STATEMENTS