# SECURITIES AND
EXCHANGE COMMISSION Washington, D.C. 20549

# FORM 10-K/A(AMENDMENT
NO. 2)

_________________

[X] ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF           1934
For the fiscal year ended June 28, 2003

OR

[  ] 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 23103

APPLIED FILMS
CORPORATION (Exact name of registrant as specified in its charter)

|COLORADO
 (State of other jurisdiction of    
 incorporation or organization) | 84-1311581
(I.R.S. Employer
Identification No.)
|----------------------------------------------------------------------------- | -----------------------------------------------

9586 I-25
Frontage Road, Suite 200, Longmont CO 80504(Address of principal executive
offices) (Zip Code)

Registrants
telephone number, including area code: (303) 774-3200

Securities registered
pursuant to Section 12(b) of the Act:   None.

Securities registered
pursuant to Section 12(g) of the Act:

Common Stock, no
par value(Title of Class)

Indicate by check mark whether the
registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes [ X ] No [___]

Indicate by check mark if disclosure
of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and
will not be contained, to the best of Registrants knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-K or any
amendments to this Form 10-K. [ X ]

Indicate by checkmark whether the
registrant is an accelerated filer (as defined in Exchange Act Rule 12-b2). Yes [ X ] No
[___]

The aggregate market value of the
common stock held by non-affiliates of the Registrant, based on a per-share price of
$20.33 as of December 27, 2002, was $217,280,046. As of May 4, 2004, there were
outstanding 14,750,621 shares of the Registrants Common Stock (no par value).

Documents Incorporated by Reference:
Portions of the Companys Proxy Statement for the 2003 Annual Meeting of Shareholders
are incorporated by reference into Part III of this Report.

---



# PORTION AMENDED

The Registrant hereby amends Part IV
Item 15 and the Exhibit Index as set forth herein.

# PART IV

# ITEM 15: Exhibits,
Financial Statements, Schedules, and Reports on Form 8-K

| | (a) | The
following documents are filed as part of this report:
| | --- | ---------------------------------------------------------

| | 1. | Financial
Statements.
| | -- | ---------------------

The
Registrants consolidated financial statements, for the year ended June 28, 2003,
together with the Report of Independent Certified Public Accountants are filed as part of
this Form 10-K/A report. See ITEM 8: Financial Statements and Supplementary
Data. The supplemental financial information listed and appearing hereafter should
be read in conjunction with the financial statements included in this report.

| | 2. | Financial
Statement Schedules.
| | -- | ------------------------------

Except
for Schedule II set forth below, financial statement schedules are not submitted because
they are not applicable or because the required information is included in the
consolidated financial statements or notes thereto.

|Valuation and Qualifying Accounts | (dollars in thousands)
|--------------------------------- | ----------------------
|                                  |                       
|
|                                  |                       
|2003                              |                       
|2002                              |                       
|2001                              |                       

Financial
Statements for Suzhou NSG AFC Thin Films Electronics Co., Ltd, together with the report
thereon of PricewaterhouseCoopers dated 27 February 2004.

---



# SUZHOU NSG AFC THIN
FILMS ELECTRONICS CO., LTD.FINANCIAL STATEMENTSAS
OF DECEMBER 31, 2003 AND 2002 AND FOR THE THREE YEARS
ENDED DECEMBER 31, 2003

---



---

| | PricewaterhouseCoopers 
Zhong Tian CPAs Co., Ltd. 
12th Floor Shui On Plaza
333 Huai Hai Zhong Lu 
Shanghai 200021
Peoples Republic of China
Telephone: +86 (21) 6386 3388
Facsimile: +86 (21) 6386 3300
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# REPORT OF INDEPENDENT
AUDITORS

TO THE BOARD OF
DIRECTORS AND SHAREHOLDERS OF 
      SUZHOU NSG AFC THIN FILMS ELECTRONICS CO., LTD.

In our opinion, the accompanying
balance sheets and the related income statements, of changes in shareholders equity
and of cash flows expressed in Renminbi present fairly, in all material respects, the
financial position of Suzhou NSG AFC Thin Films Electronics Co., Ltd. as of December 31,
2002 and 2003, and the results of its operations and its cash flows for the three years
ended December 31, 2003, in conformity with generally accepted accounting principles in
the United States of America. These financial statements are the responsibility of Suzhou
NSG AFC Thin Films Electronics Co., Ltd.s management; our responsibility is to
express an opinion on these financial statements based on our audits. We conducted our
audits of these statements in accordance with auditing standards generally accepted in the
United States of America, which require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall financial
statements presentation. We believe that our audits provide a reasonable basis for our
opinion.

/s/
PricewaterhouseCoopers      Zhong Tian CPAs Co., Ltd.

Shanghai, Peoples
Republic of China27 February 2004

---



# SUZHOU NSG AFC THIN
FILMS ELECTRONICS CO., LTD.INCOME STATEMENTSFOR THE THREE YEARS ENDED DECEMBER 31, 2003

(All amounts in Renminbi
Yuan)

|                              | Note | 2003 | 2002 | 2001
|----------------------------- | ---- | ---- | ---- | ----
|Revenues                      |      |      |      | 12  
|                              |      |     
|Cost of revenues              |      |      |      |     
|                              |      |      |      |     
|Gross profit                  |      |      |      |     
|                              |      |     
|Operating expenses:           |      |     
|                              |      |     
|Sales and marketing           |      |      |      |     
|                              |      |     
|General and administrative    |      |      |      |     
|                              |      |      |      |     
|Total operating expenses      |      |      |      |     
|                              |      |      |      |     
|Income from operations        |      |      |      |     
|                              |      |     
|Interest expense, net         |      |      |      |     
|                              |      |     
|Other operating (expenses)    |      |     
|income, net                   |      |      |      |     
|                              |      |      |      |     
|Income before taxation        |      |      |      |     
|                              |      |     
|Provision for taxes on income |      |      |      | 10  
|                              |      |      |      |     
|Net income                    |      |      |      |     
|                              |      |      |      |     

The accompanying notes are an
integral part of these financial statements.

2

---



# SUZHOU NSG AFC THIN
FILMS ELECTRONICS CO., LTD.BALANCE SHEETS  AS OF DECEMBER 31, 2003
AND 2002

(All amounts in Renminbi
Yuan)

|                                       | Note | December 31,2003 | December 31,2002
|-------------------------------------- | ---- | ---------------- | ----------------
|
|Current assets:                        |      |                  |                 
|Cash and cash equivalents              |      |                  |                 
|Notes receivable                       |      |                  |                 
|Accounts receivable, net               |      |                  |                 
|Due from investors                     |      |                  |                 
|Due from related parties               |      |                  |                 
|Inventories, net                       |      |                  |                 
|Other current assets                   |      |                  |                 
|                                       |      |                  |                 
|Total current assets                   |      |                  |                 
|                                       |      |                  |                 
|Non-current assets:                    |      |                 
|Property, plant and equipment, net     |      |                  |                 
|                                       |      |                  |                 
|Total assets                           |      |                  |                 
|                                       |      |                  |                 
|                                       |      |                 
|LIABILITIES AND EQUITY                 |      |                 
|                                       |      |                 
|Current liabilities:                   |      |                 
|Short-term borrowings                  |      |                  |                 
|Accounts payable                       |      |                  |                 
|Accruals and other current liabilities |      |                  |                 
|Due to investors                       |      |                  |                 
|Due to related parties                 |      |                  |                 
|Taxes payable                          |      |                  |                 
|                                       |      |                  |                 
|Total current liabilities              |      |                  |                 
|                                       |      |                  |                 
|Commitments and contingencies          |      |                  |                 
|                                       |      |                 
|Capital and reserves:                  |      |                 
|Paid-in capital                        |      |                  |                 
|Reserves                               |      |                  |                 
|Retained earnings                      |      |                  |                 
|                                       |      |                  |                 
|Total equity                           |      |                  |                 
|                                       |      |                  |                 
|TOTAL LIABILITIES AND EQUITY           |      |                  |                 
|                                       |      |                  |                 

The accompanying notes are an
integral part of these financial statements.

3

---



# SUZHOU NSG AFC THIN
FILMS ELECTRONICS CO., LTD.STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITYFOR THE
THREE YEARS ENDED DECEMBER 31, 2003

(All amounts in Renminbi
Yuan)

|                                  | Paid-in
capital | Reserve fund | Reserves
Enterprise
Expansion 
   Fund | Retained
earnings | Total
|--------------------------------- | --------------- | ------------ | -------------------------------------- | ----------------- | -----
|                                  |                 | (Note 9)     | (Note 9)                               |                   |      
|Balance as of January 1, 2001     |                 |              |                                        | 110,896,306       |      
|                                  |                 |             
|Net income for the year           |                 |              |                                        | -                 |      
|                                  |                 |             
|Appropriation to reserve fund     |                 |              |                                        | -                 |      
|                                  |                 |             
|Appropriation to enterprise       |                 |             
|expansion fund                    |                 |              |                                        | -                 |      
|                                  |                 |             
|Reinvestment of retained earnings |                 |             
|as capital increase               |                 |              |                                        | 28,245,604        |      
|                                  |                 |             
|Balance as of December 31, 2001   |                 |              |                                        | 139,141,910       |      
|                                  |                 |             
|Net income for the year           |                 |              |                                        | -                 |      
|                                  |                 |             
|Balance as of December 31, 2002   |                 |              |                                        | 139,141,910       |      
|                                  |                 |             
|Net income for the year           |                 |              |                                        | -                 |      
|                                  |                 |             
|Appropriation to reserve fund     |                 |              |                                        | -                 |      
|                                  |                 |             
|Reinvestment of reserve fund as   |                 |             
|capital increase                  |                 |              |                                        | 15,208,987        |      
|                                  |                 |             
|Balance as of December 31, 2003   |                 |              |                                        | 154,350,897       |      
|                                  |                 |             

The accompanying notes are an
integral part of these financial statements.

4

---



# SUZHOU NSG AFC THIN
FILMS ELECTRONICS CO., LTD.STATEMENTS OF CASH FLOWSFOR THE YEARS ENDED DECEMBER
31, 2003

(All amounts in Renminbi
Yuan)

|                                                 |  |  | 
|------------------------------------------------ |  |  | 
|
|CASH FLOWS FROM OPERATING ACTIVITIES             |  |  | 
|                                                 |  | 
|Net income                                       |  |  | 
|Adjustments to net income                        |  | 
|Depreciation of fixed assets                     |  |  | 
|Loss on disposals of fixed assets                |  |  | 
|Provision for bad debt                           |  |  | 
|Reversal of provision for loss on net            |  | 
|realizable value of inventory                    |  |  | 
|Financial expenses                               |  |  | 
|Changes in assets and liabilities                |  | 
|Notes receivables                                |  |  | 
|Accounts receivables                             |  |  | 
|Inventories                                      |  |  | 
|Due from investors                               |  |  | 
|Due from related parties                         |  |  | 
|Other current assets                             |  |  | 
|Accounts payable                                 |  |  | 
|Accruals and other current liabilities           |  |  | 
|Due to investors                                 |  |  | 
|Due to related parties                           |  |  | 
|Taxes payable                                    |  |  | 
|                                                 |  |  | 
|Net cash generated from operating activities     |  |  | 
|                                                 |  |  | 
|CASH FLOWS FROM INVESTING ACTIVITIES             |  | 
|                                                 |  | 
|Acquisition of fixed assets                      |  |  | 
|                                                 |  |  | 
|Net cash used in investing activities            |  |  | 
|                                                 |  |  | 
|CASH FLOWS FROM FINANCING ACTIVITIES             |  | 
|                                                 |  | 
|Increase in short-term borrowings                |  |  | 
|Repayment of short-term borrowings               |  |  | 
|Cash payments for interest expenses              |  |  | 
|                                                 |  |  | 
|Net cash (used in) generated from financing      |  | 
|activities                                       |  |  | 
|                                                 |  |  | 
|NET INCREASE (DECREASE) IN CASH AND CASH         |  | 
|EQUIVALENTS DURING THE YEAR                      |  |  | 
|                                                 |  | 
|CASH AND CASH EQUIVALENTS, BEGINNING OF THE YEAR |  |  | 
|                                                 |  |  | 
|CASH AND CASH EQUIVALENTS, END OF YEAR           |  |  | 
|                                                 |  |  | 

The accompanying notes are an
integral part of these financial statements.

5

---



# SUZHOU NSG AFC THIN
FILMS ELECTRONICS CO., LTD.NOTES TO THE FINANCIAL STATEMENTS31 DECEMBER 2003 AND 2002

|1. | ORGANIZATION
AND OPERATIONS
|-- | ---------------------------

| | Suzhou
NSG AFC Thin Films Electronics Co., Ltd. (the Company) is a wholly foreign
owned enterprise established in Jiangsu Province of the Peoples Republic of China on
10 July 1998 with an operating period of 50 years. The Company commenced production in
April 1999.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
principal activities of the Company are production and sales of ITO-coated glass substrate
for TN-type and STN-type liquid crystal display (including color filter), reflective
coating onto glass substrate for color STN, and provision of after sale services.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2. | SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES
|-- | ------------------------------------------

| | (a) | Accounting
standards
| | --- | --------------------

| | The
financial statements have been prepared on a historical cost basis to reflect the
financial position and results of operations of the Company in accordance with accounting
principles generally accepted in the United States of America.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Use
of Estimates
| | --- | ----------------

| | The
preparation of financial statements in conformity with accounting principles generally
accepted in the United States requires management to make estimates and assumptions that
affect the amounts reported in the financial statements and accompanying notes. Actual
results could differ from those estimates.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | Cash
and cash equivalents
| | --- | -------------------------

| | The
Company considers all highly liquid investments purchased with an original maturity of
three months or less to be cash equivalents. Cash equivalents are composed primarily of
investments in money market accounts stated at cost, which approximates fair value.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | Inventories
| | --- | -----------

| | Inventories
are stated at the lower of cost or market, with cost determined using the weighted
average cost method, and include the costs of raw material, direct labor and
manufacturing overhead. Allowances are established to reduce the cost of excess and
obsolete inventories to their estimated net realizable value.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e) | Property,
plant and equipment
| | --- | -----------------------------

| | Property,
plant and equipment are stated at historical cost less accumulated depreciation.
| | ------------------------------------------------------------------------------------------

| | Depreciation
is calculated using the straight-line method to write off the cost, after taking into
account the estimated residual value (10% of the cost), of each asset over its expected
useful life. The expected useful lives are as follows:
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | MachineryOffice equipment Other equipment Leasehold improvement | 10 years5 years5 years5 years
| | --------------------------------------------------------------- | -----------------------------

6

---



# SUZHOU NSG AFC THIN
FILMS ELECTRONICS CO., LTD.NOTES TO THE FINANCIAL STATEMENTS31 DECEMBER 2003 AND 2002

|2. | SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (continued)
|-- | ------------------------------------------------------

| | (f) | Impairment
of long-lived assets
| | --- | -------------------------------

| | Since
January 1, 2002, the Company has adopted SFAS Opinion No. 144, Accounting for the
Impairment or Disposal of Long-Lived Assets, which addresses the financial
accounting and reporting for the recognition and measurement of impairment losses for
long-lived assets. In accordance with these standards, long-lived assets are reviewed for
impairment whenever events or changes in circumstances indicate that the carrying amount
of an asset may not be recoverable. The Company recognizes impairment of long-lived
assets in the event that the net book value of such assets exceeds the future
undiscounted cash flows attributable to such assets. No impairment of long-lived assets
was recognized for each of the years ended December 31, 2001, 2002 and 2003.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (g) | Financial
instruments
| | --- | ---------------------

| | Financial
instruments of the Company primarily comprise of cash, notes receivables, accounts
receivable, due from investors, due from related parties, accounts payable, due to
investors, due to related parties, advances from customers and other payables. As of
December 31, 2001, 2002 and 2003, their carrying value approximated their fair value.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (h) | Pension
scheme
| | --- | --------------

| | The
full-time employees of the Company are covered by various government-sponsored pension
plans under which the employees are entitled to a monthly pension based on certain
formulas.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
municipal and provincial governments undertake to assume the retirement benefit
obligations of all existing and future retired employees payable under the plans
described above. Contributions to these plans are expenses as incurred and other than
these monthly contributions, the Company has no further obligations for the payment of
retirement and other post retirement benefits of its employees. The assets of these plans
are held separately from those of the Group in independently administered funds managed
by the PRC government.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | Recognition
of revenue and expenses
| | --- | -----------------------------------

| | Revenue
from the sale of goods is recognised when significant risks and rewards of ownership of
the goods are transferred to the customer, when the Company neither retains continuing
managerial involvement to the degree usually associated with ownership nor effective
control over the goods sold, when it is probable that the economic benefits associated
with the transaction will flow to the Company and when the relevant amount of revenue and
costs can be measured reliably. Revenue comprises the invoiced value for the sale of
goods and services net of value-added tax, rebates and discounts. Expenses are recognized
when incurred.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (j) | Income
taxes
| | --- | ------------

| | Income
taxes are accounted for using an asset and liability approach which requires the
recognition of income taxes payable or refundable for the current year and deferred tax
liabilities and assets for the future tax consequences of events that have been
recognized in the Companys financial statements or tax returns. The measurement of
deferred tax assets is reduced, if necessary, by the amount of any tax benefits that,
based on available evidence, are not expected to be realized.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

7

---



# SUZHOU NSG AFC THIN
FILMS ELECTRONICS CO., LTD.NOTES TO THE FINANCIAL STATEMENTS31 DECEMBER 2003 AND 2002

|2. | SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (continued)
|-- | ------------------------------------------------------

| | (k) | Foreign
Currency Transactions
| | --- | -----------------------------

| | The
accounts of the Company are maintained in Renminbi (Rmb). Transactions
arising in foreign currencies are converted into Rmb at exchange rates prevailing on the
first day of the month in which the transactions took place. Assets and liabilities
denominated in foreign currencies are translated into Rmb at exchange rates prevailing on
the balance sheet date. Exchange gains or losses are included in the current results of
operations.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (l) | Operating
leases
| | --- | ----------------

| | Leases
where substantially all the rewards and risks of ownership of assets remain with the
leasing company are accounted for as operating leases. Payments made under operating
leases net of any incentives received by the Company from the leasing company are charged
to the statements of operations on a straight-line basis over the lease periods.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (m) | Recently
adopted accounting pronouncements
| | --- | ------------------------------------------

| | In
June 2001, the FASB issued SFAS No. 143, Accounting for Asset Retirement Obligations (SFAS
No. 143), which addresses accounting and reporting for obligations associated with
the retirement of tangible long-lived assets and the associated asset retirement costs.
SFAS No. 143 requires an entity to recognize an asset retirement obligation in the period
in which it is incurred, and the entity shall capitalize the asset retirement cost by
increasing the carrying amount of the related asset by the same amount as the liability
and subsequently allocate that retirement cost to expense over the assets useful
life. SFAS No. 143 is effective for fiscal years beginning after June 15, 2002. The
adoption of SFAS No. 143 did not have a material effect on the Companys financial
position or results of operations.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
November 2002, the FASB issued FASB Interpretation No. 45, Guarantors
Accounting and Disclosure Requirements for Guarantees, including Indirect Guarantees of
Indebtedness of Others (FIN 45). FIN 45 requires the recognition of a
liability for certain guarantee obligations issued or modified after December 31, 2002.
FIN 45 also clarifies disclosure requirements to be made by a guarantor for certain
guarantees. The disclosure provisions of FIN 45 are effective for interim periods and
fiscal years ending after December 15, 2002. The adoption of FIN 45 did not have a
material effect on the Companys financial position or results of operations.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
June 2003, the FASB issued SFAS No. 150, Accounting for Certain Financial
Instruments with Characteristics of both Liabilities and Equity (SFAS No. 150).
SFAS No. 150 establishes standards for how an issuer classifies and measures certain
financial instruments with characteristics of both liabilities and equity. It requires
that an issuer classify a financial instrument that is within its scope as a liability
(or as an asset in some circumstances). It is effective for financial instruments entered
into or modified after May 31, 2003 and otherwise is effective at the beginning of the
first interim period beginning after June 15, 2003. It is to be implemented by reporting
the cumulative effect of a change in an accounting principle for financial instruments
created before the issuance date of SFAS No. 150 and still in existence at the beginning
of the interim period of adoption. Restatement is not permitted. The adoption of SFAS No.
150 did not have a material effect on the Companys financial position or results of
operations.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

8

---



# SUZHOU NSG AFC THIN
FILMS ELECTRONICS CO., LTD.NOTES TO THE FINANCIAL STATEMENTS31 DECEMBER 2003 AND 2002

|3. | CASH
AND CASH EQUIVALENTS
|-- | -------------------------

|                | December 31,2003 | December 31,2002
|--------------- | ---------------- | ----------------
|Cash on hand    |                  |                 
|Demand deposits |                  |                 
|                |                  |                 
|                |                  |                 
|                |                  |                 

|4. | ACCOUNTS
RECEIVABLE AND PROVISION FOR BAD DEBTS
|-- | -----------------------------------------------

|                         | December 31,2003 | December 31,2002
|------------------------ | ---------------- | ----------------
|                         |                  |                 
|Accounts receivable      |                  |                 
|Less: General provisions |                  |                 
|                         |                  |                 
|                         |                  |                 
|                         |                  |                 

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

|                                                     | December 31,2003 | December 31,2002
|---------------------------------------------------- | ---------------- | ----------------
|                                                     |                  |                 
|Raw materials                                        |                  |                 
|Finished goods                                       |                  |                 
|                                                     |                  |                 
|                                                     |                  |                 
|Less: Provision for net realizable value ofinventory |                  |                 
|                                                     |                  |                 
|                                                     |                  |                 
|                                                     |                  |                 

|6. | PROPERTY,
PLANT AND EQUIPMENT
|-- | -----------------------------

|                               | December 31,2003 | December 31,2002
|------------------------------ | ---------------- | ----------------
|                               |                  |                 
|Machinery                      |                  |                 
|Office equipment               |                  |                 
|Other equipment                |                  |                 
|Leasehold improvements         |                  |                 
|                               |                  |                 
|                               |                  |                 
|Less: accumulated depreciation |                  |                 
|                               |                  |                 
|                               |                  |                 
|                               |                  |                 

9

---



# SUZHOU NSG AFC THIN
FILMS ELECTRONICS CO., LTD.NOTES TO THE FINANCIAL STATEMENTS31 DECEMBER 2003 AND 2002

|7. | SHORT-TERM
BORROWINGS
|-- | ---------------------

|            | December 31,2003 | December 31,2002
|----------- | ---------------- | ----------------
|            |                  |                 
|Bank loans  |                  |                 
|- Unsecured |                  |                 
|            |                  |                 

| | 50%
of the above loans were guaranteed by Nippon Sheet Glass Co., Ltd. by issuing an
irrevocable official letter of guarantee and the remaining 50% of loans by a bank
guarantee provided by Applied Films Corporation. The loan will be due on January 14,
2004. The related interest rate was 1.9% (2002: 0.82% to 5.54%) per annum.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8. | PAID-IN
CAPITAL
|-- | ---------------

| | As
of December 31, 2003, the registered capital of the Company was USD 18,645,000, which had
been contributed by the respective joint venture partners as follows:
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                            | Country of | December 31,    2002 | Increase in    2003 | December 31,    2002
|--------------------------- | ---------- | -------------------- | ------------------- | --------------------
|                            |            |                      |                     |                     
|Applied Films Corporation   |            |                      |                     | U.S.A.              
|Nippon Sheet Glas Co., Ltd. |            |                      |                     | Japan               
|                            |            |                      |                    
|                            |            |                      |                     |                     
|                            |            |                      |                    

| | Contributions
to paid-in capital in 2003 transferred from reserve fund are credited to the paid-in
capital account at the prevailing exchange rate stipulated by the Peoples Bank of
China prevailing at the contribution dates.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9. | STATUTORY
RESERVES
|-- | ------------------

| | In
accordance with the Law of the PRC on Enterprises Operated Exclusively with Foreign
Capital and the Companys Articles of Association, an appropriation of the
Reserve Fund from profit after tax having set off accumulated losses of previous years in
advance have to be made prior to profit distribution to the equity owners. The
appropriation for the Reserve Fund is no less than 10% of the profit after tax and it
will cease to accrue when the accumulated appropriation exceeds 50% of the registered
capital.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | A
resolution from the Board of Directors dated 17 November 2003, appropriated 85% and
10% of net profit Rmb18,710,021 and Rmb17,316,761, respectively, for the year ended 31
December 2002 and 2001 to the Reserve Fund.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | A
resolution from the Board of Directors dated 27 February 2004, appropriated 10% to
the Reserve Fund of net profit Rmb38,039,479 for the year ended 31 December 2003.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------

10

---



# SUZHOU NSG AFC THIN
FILMS ELECTRONICS CO., LTD.NOTES TO THE FINANCIAL STATEMENTS31 DECEMBER 2003 AND 2002

|10. | PROVISION
FOR TAXES ON INCOME
|--- | -----------------------------

| | The
Company is subject to the Law of Income Tax for Enterprises with Foreign Investment and
Foreign Enterprises of the Peoples Republic of China.
| | --------------------------------------------------------------------------------------------------------------------------------------------------

| | As
the Company qualifies as a foreign investment production enterprise and is established in
a high-technology development zone, the prevailing enterprise income tax rate is 15% and
the local tax rate is exempted. According to the relevant tax regulations, the Company is
entitled to two years exemption from income taxes followed by three years of a 50%
tax reduction, commencing from the first cumulative profit-making year net of losses
carried forward from previous five years.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Taxable
income is calculated based on total revenue less deductible cost of goods sold, expenses
and other non-operating gains (losses) allowed under the existing tax regulations.
Enterprise income taxes have been provided at the rate of 7.5% (2002: 7.5%, 2001: nil)
based on the taxable income for the year.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11. | EMPLOYEE
BENEFITS
|--- | -----------------

| | The
full-time employees of Suzhou NSG AFC Thin Films Electronics Co., Ltd. which was
established in the PRC are entitled to staff welfare benefits including medical care,
welfare subsidies, unemployment insurance and pension benefits. Suzhou NSG AFC Thin Films
Electronics Co., Ltd. is required to accrue for these benefits based on certain
percentages of the employees salaries in accordance with the relevant regulations
and make contributions to the state-sponsored pension and medical plans out of the
amounts accrued for medical and pension benefits. The total provision accrued for such
employee benefits amounted to RMB1,781,570, RMB2,109,719 and RMB2,774,640 for the years
ended December 31, 2001, 2002 and 2003, respectively. The Chinese government is
responsible for the medical benefits and ultimate pension liability to these employees.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12. | RELATED
PARTY TRANSACTIONS
|--- | --------------------------

| | Parties
are considered to be related if one party has the ability, directly or indirectly, to
control the other party, or exercise significant influence over the other party in making
financial and operating decisions. Parties are also considered to be related if they are
subject to common control or common significant influence.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a)
Names of related parties and nature of relationship
| | -------------------------------------------------------

| | Name                                                                                                                                                                                                                                                                                                                                | Relationship                                                                                                                                                                      
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Applied Films Corporation                       
Nippon Sheet Glass Co., Ltd.                    
Suzhou NSG Electronics Co., Ltd.                
Nippon Sheet Glass Purchase and Supply Co., Ltd.
Nippon Sheet Glass Engineering Co., Ltd.        
Applied Films Asia Pacific Ltd.                 
Applied Films China Co., Ltd. | Investor
Investor 
Controlled by the same investor
Controlled by the same investor
Controlled by the same investor
Controlled by the same investor
Controlled by the same investor

11

---



# SUZHOU NSG AFC THIN
FILMS ELECTRONICS CO., LTD.NOTES TO THE FINANCIAL STATEMENTS31 DECEMBER 2003 AND 2002

|12. | RELATED
PARTY TRANSACTIONS (CONTINUED)
|--- | --------------------------------------

| | (b)  
                     During the years, the Company had following significant transactions
with                     related parties:
| | -----------------------------------------------------------------------------------------------------------------------------------------

| |                                          |             |  |            
| | ---------------------------------------- | ----------- |  | -----------
|
| | Sales of goods                           |             |  |            
| |                                          |             |  | 2003       
| |                                         
| | Nippon Sheet Glass Co., Ltd.             |             |  | 165,131,814
| | Applied Films Asia Pacific Ltd.          |             |  | 22,387,977 
| | Applied Films Corporation                |             |  | -          
| | Suzhou NSG Electronics Co., Ltd.         |             |  | 1,485,903  
| |                                          |             |  |            
| |                                          | 189,005,694 |  |            
| |                                          |             |  |            
| |                                         
| | Purchases of goods                       |            
| |                                          | 2003        |  |            
| |                                         
| | Suzhou NSG Electronics Co., Ltd.         |             |  | 171,615,912
| | Nippon Sheet Glass Purchase and Supply   |            
| | Co., Ltd.                                |             |  | 21,608,535 
| | Nippon Sheet Glass Co., Ltd.             |             |  | 22,011,614 
| | Applied Films Asia Pacific Ltd.          |             |  | 5,323,352  
| | Applied Films Corporation                |             |  | 314,793    
| | Applied Films China Co., Ltd.            |             |  | 872,393    
| |                                          |             |  |            
| |                                          |             |  | 221,746,599
| |                                          |             |  |            
| |                                         
| | Purchases of fixed assets                |            
| |                                          |             |  | 2003       
| |                                         
| | Applied Films Corporation                |             |  | 183,339    
| | Nippon Sheet Glass Engineering Co., Ltd. |             |  | -          
| |                                          |             |  |            
| |                                          | 183,339     |  |            
| |                                          |             |  |            
| |                                         
| | Royalty fee                              |            
| |                                          |             |  | 2003       
| |                                         
| | Nippon Sheet Glass Co., Ltd.             |             |  | 3,502,382  
| | Applied Films Corporation                |             |  | 3,502,382  
| |                                          |             |  |            
| |                                          |             |  | 7,004,764  
| |                                          |             |  |            
| |                                         
| | Rental fee                               |            
| |                                          |             |  | 2003       
| |                                         
| | Suzhou NSG Electronics Co., Ltd.         |             |  | 3,246,432  
| |                                          |             |  |            

12

---



# SUZHOU NSG AFC THIN
FILMS ELECTRONICS CO., LTD.NOTES TO THE FINANCIAL STATEMENTS31 DECEMBER 2003 AND 2002

|12. | RELATED
PARTY TRANSACTIONS (CONTINUED)
|--- | --------------------------------------

| | (c) As of 31 December 2003 and 2002, the Company had following balances
with related                     parties:
| | -----------------------------------------------------------------------------------------------------------------

|                                                 | December 31,2003 | December 31,2002
|------------------------------------------------ | ---------------- | ----------------
|                                                 |                  |                 
|Due from investors -                             |                  |                 
|Nippon Sheet Glass Co., Ltd.                     |                  |                 
|Applied Films Asia Pacific Ltd.                  |                  |                 
|                                                 |                  |                 
|                                                 |                  |                 
|                                                 |                  |                 
|                                                 |                  |                 
|Due from related parties -                       |                  |                 
|Applied Films Asia Pacific Ltd.                  |                  |                 
|Suzhou NSG Electronics Co., Ltd.                 |                  |                 
|Applied Films Corporation                        |                  |                 
|Others                                           |                  |                 
|                                                 |                  |                 
|                                                 |                  |                 
|                                                 |                  |                 
|                                                 |                  |                 
|Due to investors -                               |                  |                 
|Nippon Sheet Glass Co., Ltd.                     |                  |                 
|Applied Films Asia Pacific Ltd.                  |                  |                 
|                                                 |                  |                 
|                                                 |                  |                 
|                                                 |                  |                 
|                                                 |                  |                 
|Due to related parties -                         |                  |                 
|Suzhou NSG Electronics Co., Ltd.                 |                  |                 
|Nippon Sheet Glass Purchase and Supply Co., Ltd. |                  |                 
|Applied Films Asia Pacific Ltd.                  |                  |                 
|Applied Films China Co.,Ltd                      |                  |                 
|                                                 |                  |                 
|                                                 |                  |                 
|                                                 |                  |                 

| | The
balances due from/to related parties and investors arose from payments made on behalf of
the Company. These balances were unsecured, interest-free and had no fixed repayment
dates.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|13. | COMMITMENTS
AND CONTINGENCIES
|--- | -----------------------------

| | The
Company has entered into an operating lease agreement with Suzhou NSG Electronics Co.,
Ltd. for lease of a factory building.
| | --------------------------------------------------------------------------------------------------------------------------------

|              | December 31,2003 | December 31,2002
|------------- | ---------------- | ----------------
|              |                  |                 
|Within 1 year |                  |                 
|Thereafter    |                  |                 
|              |                  |                 
|              |                  |                 
|              |                  |                 

13

---



# SUZHOU NSG AFC THIN
FILMS ELECTRONICS CO., LTD.NOTES TO THE FINANCIAL STATEMENTS31 DECEMBER 2003 AND 2002

|14. | RECLASSIFICATION
OF COMPARATIVE FIGURES
|--- | ---------------------------------------

| | Certain
comparative figures have been reclassified to conform to the current year presentation.
| | -----------------------------------------------------------------------------------------------

14

---



# SOZHOU NSG AFC THIN
FILMS ELECTRONICS CO., LTDNOTES TO THE FINANCIAL STATEMENTS31 DECEMBER 2003 AND
2002

| | 3. | Exhibits.
| | -- | ---------

| | Reference
is made to the Exhibit Index which is found on the last page of the body of this Form
10-K Annual Report preceding the exhibits.
| | ------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Reports
on Form 8-K
|--- | -------------------

| | The
Registrant filed a Current Report on Form 8-K dated April 29, 2003, disclosing in Item 12
an earnings press release.
| | ------------------------------------------------------------------------------------------------------------------------

|(c) | Exhibits
|--- | --------

| | The
response to this portion of Item 15 is submitted in the Exhibit Index to this Annual
Report.
| | ------------------------------------------------------------------------------------------------

|(d) | Financial
Statement Schedules
|--- | -----------------------------

| | The
response to this section of Item 15 is submitted in Item 15(a)(2) above.
| | ----------------------------------------------------------------------------

15

---



# SIGNATURES

Pursuant
to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the
registrant has duly caused this amendment to the Form 10-K Annual Report to be signed on
its behalf by the undersigned, thereunto duly authorized.

| |  | APPLIED FILMS CORPORATIONBy: /s/ Thomas T. Edman      
      Thomas T. Edman, Chief Executive Officer
      and President
      June 9, 2004
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------

Pursuant
to the requirements of the Securities Exchange Act of 1934, this amendment to the Form
10-K Annual Report has been signed by the following persons in the capacities indicated on
June 9, 2004.

|Signatures                 |  | Title                                                                                                               
|-------------------------- |  | --------------------------------------------------------------------------------------------------------------------
|/s/ Richard P. Beck*       |  | Director, Chairman of the Board                                                                                     
|                          
|Richard P. Beck            |  |                                                                                                                     
|/s/ Thomas T. Edman        |  | Director, Chief Executive Officer
and President(principal executive officer)                                        
|                          
|Thomas T. Edman            |  |                                                                                                                     
|/s/ Lawrence D. Firestone  |  | Chief Financial Officer, Treasurer, Senior Vice
President and Secretary
(principal accounting and financial officer)
|                          
|Lawrence D. Firestone      |  |                                                                                                                     
|/s/ Allen Alley*           |  | Director                                                                                                            
|                          
|Allen Alley                |  |                                                                                                                     
|/s/ John S. Chapin*        |  | Director                                                                                                            
|                          
|John S. Chapin             |  |                                                                                                                     
|/s/ Vincent Sollitto, Jr.* |  | Director                                                                                                            
|                          
|Vincent Sollitto, Jr.      |  |                                                                                                                     

|* By: | /s/ Lawrence D. Firestone                                                  | 
|----- | -------------------------------------------------------------------------- | 
|      | Lawrence D.
FirestoneAttorney-in-Fact for each of theabove-named directors

16

---



| | 
| | 

# EXHIBIT INDEX

|Exhibit No. | Description
|----------- | -----------

|3.1 | Amended
and Restated Articles of Incorporation of Applied Films Corporation, as amended, are
incorporated by reference to Exhibit 3.1 of Registrants Current Report on Form 8-K
dated January 16, 2001.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3.2 | Amended
and Restated Bylaws of Applied Films Corporation are incorporated by reference to Exhibit
3.2 of              Registrant's Registration Statement on Form S-1, as amended (Reg. No.
333-35331).
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.1 | Specimen
common stock certificate is incorporated by reference to Exhibit 4.1 of Registrant's
Registration              Statement on Form S-1, as amended (Reg. No. 333-35331).
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.1 | 1993
Stock Option Plan is incorporated by reference to Exhibit 4 of Registrant's Registration
Statement on              Form S-8 (Reg. No. 333-51175).
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------

|10.2 | 1997
Stock Option Plan, as amended, is incorporated by reference to Exhibit 10-2 of
Registrant's Registration              Statement on Form S-1, as amended (Reg. No.
333-35331), by reference to Exhibit 4.2 of Registrant's              Registration
Statement on Form S-8 (Reg. No. 333-47967) to reference to Exhibit 4.2 of Registrant's
             Registration Statement on Form S-8 (Reg. No. 333-38426) any by reference to
Exhibit 4.2 and 4.3 of              Registrant's Registration Statement on Form S-8 (Reg.
No. 333-56376) and the Fifth Amendment to the 1997              Stock Option Plan is
incorporated by reference to Exhibit 10.2 to the Registrant's Annual Report on Form
             10-K/A for the fiscal year ended June 29, 2002.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.3 | Employee
Stock Purchase Plan, as amended, is incorporated by reference to Exhibit 10.3 of
Registrant's              Registration Statement on Form S-1, as amended (Reg. No.
333-35331), by reference to Exhibit 4 to the              Registrant's Registration
Statement on Form S-8 (Reg. No. 333-47951) and by reference to Exhibit 4.2 on
             Registrant's Registration Statement on Form S-8 (Reg. No. 333-56378) and the
Fourth Amendment to the Employee              Stock Purchase Plan is incorporated by
reference to Exhibit 10.3 to the Registrant's Annual Report on Form              10-K/A
for the fiscal year ended June 29, 2002.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.4 | Form
of Indemnity Agreement between Registrant and each of its Directors and Executive
Officers is              incorporated by reference to Exhibit 10.4 of Registrant's
Registration Statement on Form S-1, as amended              (Reg. No. 333-35331).
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.5 | Lease
Agreement dated January 30, 1998, between 9586 East Frontage Road, Longmont, CO 80504 LLC
and Registrant is incorporated by reference to Exhibit 10.9 of Registrants
Quarterly Report on form 10-Q for the fiscal quarter ended December 27, 1997.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.6 | Agreement,
dated November 18, 1997, between Nippon Sheet Glass Co., Ltd., NSG Fine Glass Co., Ltd.
and              Registrant is incorporated by reference to Exhibit 10.8 of Registrant's
Annual Report on Form 10-K for the              fiscal year ended June 27, 1998.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.7 | Outside
Director Stock Option Plan is incorporated by reference to Exhibit 4.1 of Registrant's
Registration              Statement on Form S-8 (Reg. No. 333-95367), and by reference to
Exhibits 4.2 and 4.3 of Registrant's              Registration Statement on Form S-8
(Reg. No. 333-75164).
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.8 | Share
Purchase and Exchange Agreement dated October 18, 2000, between Registrant, AFCO GmbH
& Co. KG, Balzers Process Systems GmbH and Unaxis Holding AG is incorporated by
reference to Exhibit 2.1 of Registrants Current Report on Form 8-K dated December
31, 2000.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.9 | Amendment
Agreement dated December 29, 2000, between Registrant, AFCO GmbH & Co. KG, Balzers
Process Systems GmbH and Unaxis Holding AG is incorporated by reference to Exhibit 2.2 of
Registrants Current report on Form 8-K dated December 31, 2000.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

17

---



|10.10 | Second
Amendment Agreement dated February 27, 2002, between Applied Films Corporation, Applied
Films GmbH & Co. KG, Balzers Process Systems GmbH and Unaxis Holding AG is
incorporated by reference to Exhibit 2.7 of Registrants Current Report on Form
8-K/A dated December 31, 2000.
|----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.11 | Contribution
Agreement dated December 29, 2000, between Balzers Process Systems GmbH and Leybold
Coating GmbH & Co. KG is incorporated by reference to Exhibit 2.3 of Registrants
Current Report on Form 8-K dated December 31, 2000.
|----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.12 | Bravo
Intellectual Property License Agreement dated December 31, 2000, between Balzers Process
Systems GmbH and Leybold Coating GmbH & Co. KG is incorporated by reference to
Exhibit 2.4 of Registrants Current Report on Form 8-K dated December 31, 2000.
|----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.13 | Newco
Intellectual Property License Agreement dated December 31, 2000, between Balzers Process
Systems GmbH and Leybold Coating GmbH & Co. KG is incorporated by reference to
Exhibits 2.5 of Registrants Current Report on form 8-K dated December 31, 2000.
|----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.14 | Securities
Purchase Agreement dated January 16, 2001, between Registrant and the purchasers
identified on the signature pages thereto is incorporated by reference to Exhibit 10.1 of
Registrants Current Report on Form 8-K dated January 16, 2001.
|----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.15 | Registration
Rights Agreement dated January 16, 2001, between Registrant and the investors identified
on the signature pages thereto is incorporated by reference to Exhibit 10.2 of Registrants
Current Report on Form 8-K dated January 16, 2001.
|----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.16 | Common
Stock Warrant No. 1 dated January 16, 2001 is incorporated by reference to Exhibit 10.3
of              Registrant's Current Report on Form 8-K dated January 16, 2001.
|----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.17 | Common
Stock Warrant No. 2 dated January 16, 2001 is incorporated by reference to Exhibit 10.4
of              Registrant's Current Report on Form 8-K dated January 16, 2001.
|----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.18 | Common
Stock Warrant No. 3 dated January 16, 2001 is incorporated by reference to Exhibit 10.5
of              Registrant's Current Report on Form 8-K dated January 16, 2001.
|----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.19 | Common
Stock Warrant No. 4 dated January 16, 2001 is incorporated by reference to Exhibit 10.6
of              Registrant's Current Report on Form 8-K dated January 16, 2001.
|----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.20 | Lease
Agreement between RWE Systems Immobilren GmbH & Co. KG/Lahmeyer Grandbesitz GmbH & Co.
KG and Applied Films GmbH & Co. KG dated January 31, 2001 for the Alzenau, Germany
facility, incorporated by reference to Exhibit 10.22 of Registrants Annual Report
on Form 10-K for the fiscal year ended June 30, 2001.
|----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.21 | Commercialization
Agreement between The Coca-Cola Company, KRONES AG and Applied Films GmbH & Co. KG
(as assignee of Balzers Process Systems GmbH) effective September 1, 2000, incorporated
by reference to Exhibit 10.23 of the Registrants Annual Report on Form 10-K/A for
the fiscal year ended June 30, 2001.
|----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.22 | Non-Employee,
Non-Director Officer and Consultant Non-Qualified Stock Option Plan dated October 24,
2001 is incorporated by reference to Exhibit 10.3 of Registrants Quarterly Report
on Form 10-Q for the fiscal quarter ended December 29, 2001.
|----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.23 | Equity
Joint Venture Agreement between Applied Films Corporation and Nippon Sheet Glass Co.,
Ltd., dated February 17, 1999, is incorporated by reference to Exhibit 10.25 to the
Registrants Annual Report on Form 10-K for the fiscal year ended June 29, 2002.
|----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.24 | Asset
Purchase Agreement dated September 24, 2002, by and among Applied Films Corporation and
Information Products Longmont, Inc. is incorporated by reference to Exhibit 2.1 of
Registrants Current Report on Form 8-K dated September 24, 2002.
|----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

18

---



|10.25 | License
Agreement dated September 24, 2002, by and among Applied Films Corporation and
Information Products              Longmont, Inc. is incorporated by reference to Exhibit
2.2 of Registrant's Current Report on Form 8-K dated              September 24, 2002.
|----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.26 | Sublease
dated September 24, 2002, by and among Applied Films Corporation and Information Products
Longmont,              Inc. is incorporated by reference to Exhibit 2.3 of Registrant's
Current Report on Form 8-K dated September              24, 2002.
|----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.27 | Services
Agreement dated September 24, 2002, by and among Applied Films Corporation and
Information Products              Longmont, Inc. is incorporated by reference to Exhibit
2.4 of Registrant's Current Report on Form 8-K dated              September 24, 2002.
|----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.28 | Noncompetition
Agreement dated September 24, 2002, by and among Applied Films Corporation and
Information              Products Longmont, Inc. is incorporated by reference to Exhibit
2.5 of Registrant's Current Report on Form              8-K dated September 24, 2002.
|----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.29 | Supply
Agreement dated September 24, 2002, by and among Applied Films Corporation and
Information Products              Longmont, Inc. is incorporated by reference to Exhibit
2.6 of Registrant's Current Report on Form 8-K dated              September 24, 2002.
|----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.30 | Applied
Films Corporation Long Term Incentive Plan dated October 22, 2003, is incorporated by
reference to              Exhibit 4.3 of Registrant's Registration Statement on Form S-8
(Reg. No. 333-114809).
|----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.31 | Applied
Films Corporation Non-Employee, Non-Director, Officer & Consultant Non-Qualified
Stock Option Plan is              incorporated by reference to Exhibit 4.4 of
Registrant's Registration Statement on Form S-8 (Reg. No.              333-114809).
|----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11.1 | Statement
re: computation of per share earnings.
|---- | ------------------------------------------------

|13.1 | Annual
Report to Shareholders for the year ended June 28, 2003. This exhibit is furnished for
the information of the Securities and Exchange Commission and is not deemed filed as
part of this filing.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|21.1 | Subsidiaries
of Applied Films Corporation is incorporated by reference to Exhibit 21 of Registrant's
             Registration Statement on Form S-1, as amended (Reg. No. 333-68476).
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|23.1* | Consent
of Ernst & Young LLP.
|----- | -----------------------------

|23.2 | Consent
of PricewaterhouseCoopers Zhong Tian Certified Public Accountants Co., Ltd.
|---- | -----------------------------------------------------------------------------------

|24.1* | Power
of Attorney.
|----- | ------------------

|31.1 | Certificate
of the Chief Executive Officer and President of Applied Films Corporation pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------

|31.2 | Certificate
of the Chief Financial Officer of Applied Films Corporation pursuant to Section 302 of
the Sarbanes-Oxley Act of 2002.
|---- | ----------------------------------------------------------------------------------------------------------------------------------

|32.1 | Certificate
of the Chief Executive Officer and President and of the Chief Financial Officer of
Applied Films Corporation pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

*Previously filed

19

---



Exhibit 23.2

PRICEWATERHOUSECOOPERS

PricewaterhouseCoopers Zhong Tian
Certified Public Accountants Co., Ltd.
Mailing address:
12th Floor, Shui On Plaza 
333 Huai Hai Zhong Lu
Shanghai 200021 
Peoples Republic of China
Telephone +86 (21) 6386-3388
Facsimile +86 (21) 6386 3300

7 June 2004

# CONSENT OF INDEPENDENT
ACCOUNTANTS

To: Applied Films Corporation

We
hereby consent to the incorporation by reference in the Registration Statements of Applied
Films Corporation of our report dated 27 February 2004 relating to the financial
statements of Suzhou NSG AFC Thin Films Electronics Co., Ltd. as of 31
December 2003 and 2002 and for the three years ended 31 December 2003, which appears in the Annual
Report on Form 10-K.

/s/
PricewaterhouseCoopers Zhong TianCPAs Co., Ltd.

PricewaterhouseCoopers
Zhong TianCPAs Co., Ltd.

20

---



Exhibit 31.1

# CERTIFICATIONS

I, Thomas T. Edman, certify that:

|1. | I have reviewed this Annual Report on Form 10-K/A of Applied Films Corporation;
|-- | -------------------------------------------------------------------------------

|2. | Based on my knowledge, this report does not contain any untrue statement of a
          material fact or omit to state a material fact necessary to make the statements
          made, in light of the circumstances under which such statements were made, not
          misleading with respect to the period covered by this report;
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. | Based on my knowledge, the financial statements, and other financial information
          included in this report, fairly present in all material respects the financial
          condition, results of operations and cash flows of the registrant as of, and
          for, the periods presented in this report;
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. | The registrants other certifying officers and I are responsible for
          establishing and maintaining disclosure controls and procedures (as defined in
          Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) |  | designed
such disclosure controls and procedures, or caused such disclosure controls and procedures
to be designed under our supervision, to ensure that material information relating to the
registrant, including its consolidated subsidiaries, is made known to us by others within
those entities, particularly during the period in which this report is being prepared;
| | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) |  | evaluated
the effectiveness of the registrants disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the disclosure
controls and procedures, as of the end of the period covered by this report based on such
evaluation; and
| | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) |  | disclosed
in this report any change in the registrants internal control over financial
reporting that occurred during the registrants most recent fiscal quarter (the
registrants fourth fiscal quarter in the case of an annual report) that has
materially affected, or is reasonably likely to materially affect, the registrants
internal control over financial reporting; and
| | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. | The registrants other certifying officers and I have disclosed, based on
          our most recent evaluation of internal control over financial reporting, to the
          registrants auditors and the audit committee of the registrants
          board of directors (or persons performing the equivalent functions):
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) |  | all
significant deficiencies and material weaknesses in the design or operation of internal
control over financial reporting which are reasonably likely to adversely affect the
registrants ability to record, process, summarize and report financial information;
and
| | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) |  | any
fraud, whether or not material, that involves management or other employees who have a
significant role in the registrants internal control over financial reporting.
| | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Dated: June 9, 2004 |  | /s/ Thomas T. Edman
Thomas T. EdmanChief Executive Officer and President
|------------------- |  | --------------------------------------------------------------------------------------

21

---



Exhibit 31.2

# CERTIFICATIONS

I, Lawrence D. Firestone, certify
that:

|1. | I have reviewed this Annual Report on Form 10-K/A of Applied Films Corporation;
|-- | -------------------------------------------------------------------------------

|2. | Based on my knowledge, this report does not contain any untrue statement of a
          material fact or omit to state a material fact necessary to make the statements
          made, in light of the circumstances under which such statements were made, not
          misleading with respect to the period covered by this report;
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. | Based on my knowledge, the financial statements, and other financial information
          included in this report, fairly present in all material respects the financial
          condition, results of operations and cash flows of the registrant as of, and
          for, the periods presented in this report;
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. | The registrants other certifying officers and I are responsible for
          establishing and maintaining disclosure controls and procedures (as defined in
          Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) |  | designed
such disclosure controls and procedures, or caused such disclosure controls and procedures
to be designed under our supervision, to ensure that material information relating to the
registrant, including its consolidated subsidiaries, is made known to us by others within
those entities, particularly during the period in which this report is being prepared;
| | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) |  | evaluated
the effectiveness of the registrants disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the disclosure
controls and procedures, as of the end of the period covered by this report based on such
evaluation; and
| | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) |  | disclosed
in this report any change in the registrants internal control over financial
reporting that occurred during the registrants most recent fiscal quarter (the
registrants fourth fiscal quarter in the case of an annual report) that has
materially affected, or is reasonably likely to materially affect, the registrants
internal control over financial reporting; and
| | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. | The registrants other certifying officers and I have disclosed, based on
          our most recent evaluation of internal control over financial reporting, to the
          registrants auditors and the audit committee of the registrants
          board of directors (or persons performing the equivalent functions):
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) |  | all
significant deficiencies and material weaknesses in the design or operation of internal
control over financial reporting which are reasonably likely to adversely affect the
registrants ability to record, process, summarize and report financial information;
and
| | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) |  | any
fraud, whether or not material, that involves management or other employees who have a
significant role in the registrants internal control over financial reporting.
| | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Dated: June 9, 2004 |  | /s/ Lawrence D. Firestone
Lawrence D. FirestoneChief Financial Officer, Treasurer,
Senior Vice President and Secretary
|------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------

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Exhibit 32.1

Each of Thomas T. Edman, Chief
Executive Officer and President, and Lawrence D. Firestone, Chief Financial Officer,
Treasurer, Senior Vice President and Secretary of Applied Films Corporation, certify,
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002, that:

| | (1) | the Annual Report on Form 10-K/A for the fiscal year ended June 28, 2003 which
               this statement accompanies fully complies with the requirements of Section 13(a)
               or 15(d) of the Securities Exchange Act of 1934, and
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | the information contained in the Annual Report on Form 10-K/A for the fiscal
               year ended June 28, 2003 fairly presents, in all material respects, the
               financial condition and results of operations of Applied Films Corporation.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Dated: June 9, 2004 |  | /s/ Thomas T. Edman
Thomas T. EdmanChief Executive Officer and President/s/ Lawrence D. Firestone
Lawrence D. FirestoneChief Financial Officer, Treasurer,
Senior Vice President and Secretary
|------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

A signed original of this
certification has been provided to Applied Films Corporation and will be retained by
Applied Films Corporation and furnished to the Securities and Exchange Commission upon
request.

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