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

# FORM 10-K/A (AMENDMENT NO. 1)

_________________

[X] ANNUAL REPORT
PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE
ACT OF 1934For the fiscal year
ended June 26, 2004

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 $32.80 as of December 26, 2003, was $476,396,679. As of May 18, 2005, there
were outstanding 14,936,470 shares of the Registrants Common Stock (no par value).

Documents Incorporated by
Reference: Portions of the Companys Proxy Statement for the 2004 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 and Schedules.

|(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 26, 2004,
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)
|--------------------------------- | ----------------------
|
|2004                              |                       
|2003                              |                       
|2002                              |                       

Financial
Statements for Suzhou NSG AFC Thin Films Electronics Co., Ltd, together with the report
thereon of PricewaterhouseCoopers dated 17 May 2005.

---



SUZHOU NSG AFC THIN
FILMS ELECTRONICS CO., LTD.

# FINANCIAL STATEMENTSAS
OF DECEMBER 31, 2004 AND 2003AND FOR THE THREE YEARS
ENDED DECEMBER 31, 2004

---



# PRICEWATERHOUSECOOPERS

# REPORT OF INDEPENDENT
AUDITORS

2005/SH-067/LC/DTSK

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,
2003 and 2004, and the results of its operations and its cash flows for each of the three
years in the period ended December 31, 2004, 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 Limited Company

PricewaterhouseCoopers
Zhong Tian CPAs Limited Company

Shanghai, Peoples
Republic of China

17 May 2005

---



# SUZHOU NSG AFC THIN
FILMS ELECTRONICS CO., LTD.INCOME STATEMENTSFOR THE THREE YEARS ENDED DECEMBER
31, 2004

(All amounts in Renminbi
Yuan)

|                                      | Note | 2004 | 2003 | 2002        
|------------------------------------- | ---- | ---- | ---- | ------------
|Revenues (including sales to related  |      |      |      |             
|parties of Rmb 252,224,434, Rmb       |     
|189,005,694 and Rmb 153,738,002 in    |     
|2004, 2003 and 2002, respectively, as |     
|further disclosed in Note 13)         |      | 12   |      | 493,898,447 
|                                     
|Cost of revenues                      |      |      |      | (381,588,228
|                                      |      |      |      |             
|Gross profit                          |      |      |      | 112,310,219 
|                                     
|Operating expenses:                   |     
|Sales and marketing                   |      |      |      | (10,416,985 
|                                     
|General and administrative            |      |      |      | (20,095,590 
|                                      |      |      |      |             
|Total operating expenses              |      |      |      | (30,512,575 
|                                      |      |      |      |             
|Income from operations                |      |      |      | 81,797,644  
|                                     
|Interest expense, net                 |      |      |      | (96,271     
|                                     
|Other operating expenses, net         |      |      |      | (77,243     
|                                      |      |      |      |             
|Income before taxation                |      |      |      | 81,624,130  
|                                     
|Provision for taxes on income         |      | 10   |      | (7,900,445  
|                                      |      |      |      |             
|Net income                            |      |      |      | 73,723,685  
|                                      |      |      |      |             

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, 2004
AND 2003

(All amounts in Renminbi
Yuan)

|ASSETS                                 | Note | December 31,2004 | December 31,2003
|-------------------------------------- | ---- | ---------------- | ----------------
|Current assets:                        |      |                  |                 
|Cash and cash equivalents              |      | 3                |                 
|Notes receivable                       |      |                  |                 
|Accounts receivable, net               |      | 4                |                 
|Due from an investor                   |      | 13               | (c)             
|Due from a related party               |      | 13               | (c)             
|Inventories, net                       |      | 5                |                 
|Deferred tax assets                    |      | 10               |                 
|Other current assets                   |      |                  |                 
|                                       |      |                  |                 
|Total current assets                   |      |                  |                 
|                                       |      |                  |                 
|Non-current assets:                    |     
|Property, plant and equipment, net     |      | 6                |                 
|                                       |      |                  |                 
|TOTAL ASSETS                           |      |                  |                 
|                                       |      |                  |                 
|LIABILITIES AND EQUITY                 |     
|Current liabilities:                   |     
|Short-term borrowings                  |      | 7                |                 
|Accounts payable                       |      |                  |                 
|Accruals and other current liabilities |      |                  |                 
|Due to investors                       |      | 13               | (c)             
|Due to related parties                 |      | 13               | (c)             
|Taxes payable                          |      |                  |                 
|                                       |      |                  |                 
|Total current liabilities              |      |                  |                 
|                                       |      |                  |                 
|Commitments and contingencies          |      | 14               |                 
|Capital and reserves:                  |     
|Paid-in capital                        |      |                  |                 
|Reserves                               |      | 8                |                 
|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, 2004

# (All amounts in Renminbi
Yuan)

|                                | Paid-in  
 capital | Reserve fund 
  (Note 8) | Reserves
 Enterprise
 Expansion
    Fund    
   (Note 8) | Retained
 earnings | Total
|------------------------------- | ------------------ | ------------------------ | -------------------------------------------------------- | ------------------ | -----
|Balance as of January 1, 2002   |                    | 139,141,910              |                                                          | 4,617,812          |      
|                               
|Net income for the year         |                    | -                        |                                                          | -                  |      
|                                |                    |                         
|Balance as of December 31, 2002 |                    | 139,141,910              |                                                          | 4,617,812          |      
|                               
|Net income for the year         |                    | -                        |                                                          | -                  |      
|                               
|Appropriation to reserve fund   |                    | -                        |                                                          | 21,476,360         |      
|                               
|Reinvestment of reserve fund as |                   
|capital increase                |                    | 15,208,987               |                                                          | (15,208,987        | )    
|                                |                    |                         
|Balance as of December 31, 2003 |                    | 154,350,897              |                                                          | 10,885,185         |      
|                               
|Net income for the year         |                    | -                        |                                                          | -                  |      
|                               
|Appropriation as dividends      |                   
|(Note 9)                        |                    | -                        |                                                          | -                  |      
|                               
|Appropriation to reserve fund   |                    | -                        |                                                          | 7,342,370          |      
|                                |                    |                         
|Balance as of December 31, 2004 |                    | 154,350,897              |                                                          | 18,227,555         |      
|                                |                    |                         

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, 2004

# (All amounts in Renminbi
Yuan)

|CASH FLOWS FROM OPERATING ACTIVITIES             | 2004 | 2003        | 2002
|------------------------------------------------ | ---- | ----------- | ----
|Net income                                       |      | 73,723,685  |     
|Adjustments to net income                        |     
|Depreciation of property, plant and equipment    |      | 26,432,181  |     
|Loss on disposals of fixed assets                |      | 96,094      |     
|Provision for bad debts                          |      | -           |     
|Deferred tax expense                             |      | (667,100    | )   
|Interest expense                                 |      | 170,521     |     
|Changes in assets and liabilities                |     
|Notes receivables                                |      | (2,500,000  | )   
|Accounts receivables                             |      | (11,492,379 | )   
|Inventories                                      |      | 1,949,699   |     
|Due from an investor                             |      | (2,438,377  | )   
|Due from a related party                         |      | (2,559,084  | )   
|Other current assets                             |      | 3,018,500   |     
|Accounts payable                                 |      | 13,099,145  |     
|Accruals and other current liabilities           |      | (5,086,607  | )   
|Due to investors                                 |      | (211,940    | )   
|Due to related parties                           |      | (6,584,760  | )   
|Taxes payable                                    |      | 1,032,026   |     
|                                                 |      |             |     
|Net cash generated from operating activities     |      | 87,981,604  |     
|                                                 |      |             |     
|CASH FLOWS FROM INVESTING ACTIVITIES             |     
|Proceeds from disposal of property, plant and    |     
|equipment                                        |      | 750         |     
|Acquisition of property, plant and equipment     |      | (3,645,071  | )   
|                                                 |      |             |     
|Net cash used in investing activities            |      | (3,644,321  | )   
|                                                 |      |             |     
|CASH FLOWS FROM FINANCING ACTIVITIES             |     
|Repayment of short-term borrowings               |      | (20,691,751 | )   
|Cash payments for interest expenses              |      | (170,521    | )   
|Cash payments for dividends                      |      | (22,450,286 | )   
|                                                 |      |             |     
|Net cash used in financing activities            |      | (43,312,558 | )   
|                                                 |      |             |     
|NET INCREASE (DECREASE) IN CASH AND CASH         |     
|EQUIVALENTS DURING THE YEAR                      |      | 41,024,725  |     
|CASH AND CASH EQUIVALENTS, BEGINNING OF THE YEAR |      | 271,779     |     
|                                                 |      |             |     
|CASH AND CASH EQUIVALENTS, END OF YEAR           |      | 41,296,504  |     
|                                                 |      |             |     

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

-5-

---



# 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 (PRC) 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.

As of December 31, 2004, the
registered capital of the Company was USD 18,645,000, which had been contributed by the
respective joint venture partners as follows:

|                             | December 31, 2004 |       
|---------------------------- | ----------------- | ------
|
|Applied Films Corporation    |                   | U.S.A.
|Nippon Sheet Glass Co., Ltd. |                   | Japan 
|                             |                   |       
|                             |                   |       
|                             |                   |       

# 2. SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES

|(a) | Basis
of presentation
|--- | ---------------------

| | 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) | Accounting
period
|--- | -----------------

| | The Companys
accounting period starts on 1 January and ends on 31 December.
| | ----------------------------------------------------------------------------

|(d) | 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.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | Inventories
|--- | -----------

| | Inventories are
stated at the lower of cost or market, with cost determined using the weighted average
cost method, and includes the costs of raw material, direct labor and manufacturing
overhead.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---



# 2. SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES (continued)

|(f) | 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:
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                      | 
|--------------------- | 
|Machinery             | 
|Office equipment      | 
|Other equipment       | 
|Leasehold improvement | 

| | Replacements, renewals
and improvements are capitalized and costs for repairs and maintenance are expensed as
incurred.
| | -----------------------------------------------------------------------------------------------------------------------

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

| | Since January
1, 2002, the Company has adopted Statement of Financial Accounting Standards, (SFAS)
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,
2002, 2003 and 2004.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(h) | Financial
instruments
|--- | ---------------------

| | Financial instruments
of the Company primarily comprise of cash, notes receivables, accounts receivable, due
from investors, due from related parties, other current assets, accounts payable, due to
investors, due to related parties and other payables. As of December 31, 2003 and 2004,
their carrying value approximated their fair values.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(i) | 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. 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 Company in independently administered funds managed by the
PRC government.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---



# 2. SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES (continued)

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

| | Revenue from
the sale of goods is recognised when persuasive evidence of an arrangement exists, when
delivery has occurred, when the sellers price to the buyer is fixed or determinable
and when collectibility is reasonably assured. 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.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(k) | Income
taxes
|--- | ------------

| | Deferred income
taxes are provided using the asset and liability method. Under this method, deferred tax
assets and liabilities are recognized for the future tax consequences attributable to
differences between the financial statement carrying amounts of existing assets and
liabilities and their respective tax bases and operating loss carryforwards. Deferred tax
assets and liabilities are measured using enacted tax rates expected to apply to taxable
income in the years in which those temporary differences are expected to be recovered or
settled. The effect on deferred tax assets and liabilities of a change in tax rates is
recognized in income in the period that includes the enactment date. A valuation
allowance is provided to reduce the amount of deferred tax assets if it is considered
more likely than not that some portion, or all, of the deferred tax assets will not be
realized.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(l) | Foreign
currency translation
|--- | ----------------------------

| | 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.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(m) | 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.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---



# 2. SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES (continued)

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

| | In November
2004, the FASB issued Statement No. 151, Inventory Costs, an amendment of ARB No.
43, Chapter 4 (SFAS No. 151). SFAS No. 151 requires that abnormal
amounts of idle capacity and spoilage costs be excluded from the cost of inventory and
expensed when incurred. The provisions of SFAS No. 151 are applicable to inventory costs
incurred during fiscal years beginning after June 15, 2005. The Company does not believe
the adoption of SFAS No. 151 will have a material effect on the Companys financial
position or results of operations.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In December
2004, the FASB issued Statement No. 153, Exchanges of Non monetary Assets, an
amendment of APB Opinion No. 29 (SFAS No. 153). SFAS No. 153 requires
exchanges of productive assets to be accounted for at fair value, rather than at
carryover basis, unless (1) neither the asset received nor the asset surrendered has a
fair value that is determinable within reasonable limits or (2) the transactions lack
commercial substance. SFAS No. 153 is effective for non monetary asset exchanges
occurring in fiscal periods beginning after June 15, 2005. The Company does not believe
the adoption of SFAS No. 153 will have a material effect on the Companys financial
position or results of operations.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 3. CASH AND CASH
EQUIVALENTS

|                    | December 31, 2004 | December 31, 2003
|------------------- | ----------------- | -----------------
|Cash on hand        |                   | 54,191           
|Demand deposits     |                   | 41,168,141       
|Other cash balances |                   | 74,172           
|                    |                   |                  
|                    |                   | 41,296,504       
|                    |                   |                  

# 4. ACCOUNTS RECEIVABLE

|                         | December 31, 2004 | December 31, 2003
|------------------------ | ----------------- | -----------------
|Accounts receivable      |                   | 56,521,006       
|Less: General provisions |                   | (415,000         
|                         |                   |                  
|                         |                   | 56,106,006       
|                         |                   |                  

There is no concentration of credit
risk with respect to accounts receivables except for amount due from Suzhou Epson Co., Ltd
which accounts for Rmb26,371,261 as at December 31, 2004 (December 31, 2003:
Rmb26,258,937), and amount due from an investor as disclosed in Note 13(c).

---



# 5. INVENTORIES

|               | December 31, 2004 | December 31, 2003
|-------------- | ----------------- | -----------------
|Raw materials  |                   | 16,407,640       
|Finished goods |                   | 5,324,069        
|               |                   |                  
|               |                   | 21,731,709       
|               |                   |                  

# 6. PROPERTY, PLANT AND
EQUIPMENT

|                               | December 31, 2004 | December 31, 2003
|------------------------------ | ----------------- | -----------------
|Machinery                      |                   | 284,362,369      
|Office equipment               |                   | 2,462,497        
|Other equipment                |                   | 3,834,432        
|Leasehold improvements         |                   | 4,863,087        
|                               |                   |                  
|                               |                   | 295,522,385      
|Less: accumulated depreciation |                   | (112,655,071     
|                               |                   |                  
|                               |                   | 182,867,314      
|                               |                   |                  

# 7. SHORT-TERM BORROWINGS

|               | December 31, 2004 |   | December 31, 2003
|-------------- | ----------------- | - | -----------------
|Bank loans     |                   |   |                  
|-    Unsecured |                   | - |                  
|               |                   |   |                  

As of 31 December 2003, 50% of the
above loans were guaranteed by Nippon Sheet Glass Co., Ltd. by an irrevocable letter of
guarantee and the remaining 50% of loans by a bank guarantee provided by Applied Films
Corporation. The interest rate was 1.9% per annum. The loans were fully repaid during the
year ended December 31, 2004.

---



# 8. STATUTORY RESERVES

Reserve fund can be used to offset
accumulated losses or to increase capital. Enterprise expansion fund can be used to expand
production or to increase capital.

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 (based on PRC statutory financial statements) 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.

Appropriation to statutory reserves
for the years ended December 31, 2002, 2003 and 2004 are as follows:

|                                                   | 2004 | 2003      | 2002
|-------------------------------------------------- | ---- | --------- | ----
|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, for the    |     
|year ended 31 December 2002 and 2001 respectively, |      | -         |     
|to the Reserve Fund                                |     
|                                                  
|A resolution from the Board of Directors' dated 27 |     
|February 2004, appropriated 10% of net profit Rmb  |     
|38,411,672 for the year ended 31 December 2003 to  |      | -         |     
|the Reserve Fund                                   |     
|                                                  
|A resolution from the board of Directors' dated 2  |     
|December 2004, appropriated 10% of net profit      |     
|Rmb73,423,704 for the year ended 31 December 2004  |      | 7,342,370 |     
|to the Reserve Fund                                |     
|                                                   |      |           |     
|                                                   |      | 7,342,370 |     
|                                                   |      |           |     

In the year ended 31 December 2003, there
was a reinvestment of reserve fund as capital increase amounting to Rmb 15,208,987. This
reinvestment has been verified by Suzhou Chung Hwei CPAs with the capital verification
report Suzhonghui Yanzi (2003) No. 323.

# 9. DIVIDENDS

In accordance with a resolution from
the Board of Directors dated 20 August 2004, dividends to investors amounting to
Rmb22,450,286 have been declared from earnings which were undistributed as of 31 December
2003. These dividends have been paid during the year ended December 31, 2004.

Subsequent to the 2004 financial year
end,

|(a) | in
accordance with a resolution from the Board of Directors dated 28
          February 2005, dividends to investors amounting to Rmb33,675,428 have been
          declared from earnings which were undistributed as of 31 December 2004; and
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | in
accordance with a resolution from the Board of Directors dated 30 March
          2005, dividends to investors amounting to Rmb48,949,136 have been declared from
          earnings which were undistributed as of 31 December 2004.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The financial statements for the year
2004 do not reflect the above dividends. Such dividends will be accounted for in equity as
an appropriation of retained earnings in the financial year ended 31 December 2005.

---



# 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%. The Company is exempted from the local
income tax. 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. The first year which the Company had a cumulative profit was 1999.

In 2004, since the annual export
production volume of the Company has accounted for more than 70% of the total production
volume of 2004, thus meeting the requirement of the recognition as Export Enterprise in
accordance with the Application Rules for Enterprise Income Tax of Foreign invested
Company and Foreign Company, the Company has made provision for enterprise income
tax at the rate of 10% on the taxable income. As at December 31, 2004, the Companys
application for the status of Export Enterprise for the year 2004 is still pending
approval from the relevant authorities.

Deferred tax assets amounting to
Rmb667,100 have been recognized in the financial statements for the year ended 31 December
2004. These assets are in respect of future tax consequences on provision for bad debts,
provisions for warranties and inventories written down to market, which are expected to be
realized within the operating cycle of the Company.

Provision for taxes on income is made
up of the following components:

|                               | 2004 | 2003      | 2002
|------------------------------ | ---- | --------- | ----
|Current income tax provision   |      | 8,567,545 |     
|Deferred tax assets recognised |      | (667,100  | )   
|                               |      |           |     
|                               |      | 7,900,445 |     
|                               |      |           |     

# 10. PROVISION FOR TAXES
ON INCOME (CONTINUED)

The reasons for the difference
between the effective rate and the tax rate applicable to the Company are as follows:

|                                            | 2004 | 2003 | 2002 
|------------------------------------------- | ---- | ---- | -----
|Tax rate applicable to the Company          |      | 15   | .00% 
|Status of Export Enterprise                 |      | (5   | .00%)
|Deferred tax assets not recognised          |      | 0    | .44% 
|Non-deductible expenses                     |      | 0    | .06% 
|Deferred tax assets recognised              |      | (0   | .82%)
|Under provision of income tax in prior year |      | 0    | .00% 
|                                            |      |      |      
|Effective tax rate                          |      | 9    | .68% 
|                                            |      |      |      

# 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 Rmb2,109,719, Rmb2,774,640
and Rmb3,115,249 for the years ended December 31, 2002, 2003 and 2004, respectively. The
Chinese government is responsible for the medical benefits and ultimate pension liability
to these employees.

---



# 12. RISKS AND
CONCENTRATIONS

Financial instruments that
potentially subject the Company to significant concentration of credit risk consist
primarily of cash, notes receivables, accounts receivables, due from investors, due from
related parties and other current assets.

As of December 31, 2004 and 2003, all
of the Companys cash were held in financial institutions located in the PRC. The
Company has significant concentration of credit risk as disclosed in Note 4. Credit risks,
or the risk of counterparties defaulting, are controlled by application of credit
approvals, limits and monitoring procedures. Credits risks are minimized and monitored by
limiting the Companys associations to business partners with high creditworthiness.

The Companys revenues and
expenses are generally denominated in Rmb, USD or Japanese Yen (JPY) and a
significant portion of the Companys assets and liabilities are denominated in Rmb,
USD or JPY. Rmb is not freely convertible into foreign currencies. In the PRC, foreign
exchange transactions are required by law to be transacted by authorized financial
institutions only, at exchange rates set by the Peoples Bank of China. Remittance in
currencies other than Rmb by the Company is administrated by the PRC foreign exchange
regulatory bodies and requires certain supporting documentation in order to effect the
remittance. The Company does not practise and hedging activities on its exposures to USD
or JPY. The total foreign exchange losses incurred by the Company amounted to
Rmb2,304,737, Rmb2,560,376 and Rmb1,553,123 for the years ended December 31, 2002, 2003
and 2004, respectively.

# 12. RISKS AND
CONCENTRATIONS (CONTINUED)

During the year 2004, 2003 and 2002,
approximately 78%, 78% and 81%, respectively, of the Companys revenues were exported
to customers outside of PRC where the production is carried out.

Revenues from the two largest
customers as a percentage of the Companys revenues are as follows:

|                             | 2004 | 2003 | 2002
|---------------------------- | ---- | ---- | ----
|Nippon Sheet Glass Co., Ltd. |      | 49   | %   
|Suzhou Epson Co., Ltd.       |      | 33   | %   

The loss of, or a significant reduction
in purchases by, one or more of these customers above would have a material adverse effect
on the Companys operating results.

Purchases from the largest supplier,
Suzhou NSG Electronics Co., Ltd. represented approximately 47%, 50% and 57% of the
Companys total purchases for the year 2004, 2003 and 2002 respectively.

---



# 13. 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 of entity                    | Relationship with the Company
|--------------------------------- | -----------------------------
|Applied Films Corporation         |                              
|Nippon Sheet Glass Co., Ltd.      |                              
|Suzhou NSG Electronics Co., Ltd.  |                              
|NSG Purchase and Supply Co., Ltd. |                              
|NSG Engineering Co., Ltd.         |                              
|Applied Films Asia Pacific Ltd.   |                              
|Applied Films China Co., Ltd.     |                              

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

Sales
of goods

|                                 | 2004 | 2003        | 2002
|-------------------------------- | ---- | ----------- | ----
|Nippon Sheet Glass Co., Ltd.     |      | 244,319,562 |     
|Applied Films Asia Pacific Ltd.  |      | -           |     
|Applied Films Corporation        |      | -           |     
|Suzhou NSG Electronics Co., Ltd. |      | 7,904,872   |     
|                                 |      |             |     
|                                 |      | 252,224,434 |     
|                                 |      |             |     

---



# 13. RELATED PARTY
TRANSACTIONS (CONTINUED)

|Purchases of goods                       | 2004 | 2003        | 2002
|---------------------------------------- | ---- | ----------- | ----
|                                        
|Suzhou NSG Electronics Co., Ltd.         |      | 192,206,117 |     
|NSG Purchase and Supply Co., Ltd.        |      | 21,502,192  |     
|Nippon Sheet Glass Co., Ltd.             |      | 18,609,934  |     
|Applied Films Asia Pacific Ltd.          |      | 4,880,386   |     
|Applied Films Corporation                |      | -           |     
|Applied Films China Co., Ltd.            |      | 958,095     |     
|                                         |      |             |     
|                                         |      | 238,156,724 |     
|                                         |      |             |     
|Purchases of fixed assets                |     
|                                         |      | 2004        |     
|                                        
|Applied Films Corporation                |      | -           |     
|Nippon Sheet Glass Engineering Co., Ltd. |      | -           |     
|                                         |      |             |     
|                                         |      | -           |     
|                                         |      |             |     
|Royalty fees                             |     
|                                         |      | 2004        |     
|                                        
|Nippon Sheet Glass Co., Ltd.             |      | 4,125,366   |     
|Applied Films Corporation                |      | 4,125,366   |     
|                                         |      |             |     
|                                         |      | 8,250,732   |     
|                                         |      |             |     
|Rental fees                              |      |             |     
|                                         |      | 2004        |     
|Suzhou NSG Electronics Co., Ltd.         |     
|- Factory                                |      | 2,959,399   |     
|- Equipment and facilities               |      | 380,015     |     
|                                         |      |             |     
|                                         |      | 3,339,414   |     
|                                         |      |             |     

---



# 13. RELATED PARTY TRANSACTIONS
(CONTINUED)

|(c) | As
of 31 December 2004 and 2003, the Company had following balances with related
          parties:
|--- | ---------------------------------------------------------------------------------------------------

|                                              | December 31, 2004 | December 31, 2003
|--------------------------------------------- | ----------------- | -----------------
|Due from an investor                          |                   |                  
|Nippon Sheet Glass Co., Ltd. (trade)          |                   | 37,396,191       
|                                              |                   |                  
|Due from a related party                      |                  
|Suzhou NSG Electronics Co., Ltd.              |                  
|- trade                                       |                   | 3,094,663        
|- non trade                                   |                   | 278,222          
|                                              |                   |                  
|                                              |                   | 3,372,885        
|                                              |                   |                  
|Due to investors                              |                  
|Nippon Sheet Glass Co., Ltd.                  |                  
|- trade                                       |                   | 1,022,086        
|- non trade                                   |                   | 2,575,528        
|Applied Films Corporation (non trade)         |                   | 796,761          
|                                              |                   |                  
|                                              |                   | 4,394,375        
|                                              |                   |                  
|Due to related parties                        |                  
|Suzhou NSG Electronics Co., Ltd.              |                  
|- trade                                       |                   | 34,060,106       
|- non trade                                   |                   | 1,120,050        
|NSG Purchase and Supply Co., Ltd. (non trade) |                   | 4,043,849        
|Applied Films Asia Pacific Ltd. (non trade)   |                   | 1,037,682        
|Applied Films China Co., Ltd. (non trade)     |                   | -                
|                                              |                   |                  
|                                              |                   | 40,261,687       
|                                              |                   |                  

The trade balances due from/to
related parties and investors arose in the normal course of business. These balances are
unsecured, interest-free and are repayable within the normal credit terms granted to or by
the Company.

The non-trade balances due from/to
related parties and investors are mainly in respect of royalty fee and payments made on
behalf of the Company. These balances are unsecured, interest-free and have no fixed
repayment dates.

---



# 14. COMMITMENTS AND
CONTINGENCIES

(a) Capital Commitment

Capital expenditure contracted for at
the balance sheet date but not recognized in the financial statements are as follows:

|                                          | December 31, 2004 | December 31, 2003
|----------------------------------------- | ----------------- | -----------------
|Property, plant and equipment - machinery |                   | 20,777,833       
|                                          |                   |                  

(b) Operating Lease
Commitment

The Company has entered into an
operating lease agreement with Suzhou NSG Electronics Co., Ltd. to lease a factory
building. The operating lease commitments are as follows:

|              | December 31, 2004 | December 31, 2003
|------------- | ----------------- | -----------------
|Within 1 year |                   | 2,959,399        
|              |                   |                  

# 15. RECLASSIFICATION
OF COMPARATIVE FIGURES

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

---



# SOZHOU NSG AFC THIN
FILMS ELECTRONICS CO., LTD NOTES TO THE FINANCIAL
STATEMENTS 31 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) | Exhibits
|--- | --------

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

|(c) | Financial
Statement Schedules
|--- | -----------------------------

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

---



# 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.

May
18, 2005

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

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
May 18, 2005.

|Signatures           /s/ Richard P. Beck*                     
                  Richard P. Beck/s/ Thomas T. Edman                     
                  Thomas T. Edman/s/ Lawrence D. Firestone
               Lawrence D. Firestone/s/ Allen Alley*                         
                    Allen Alley/s/ John S. Chapin*                      
                  John S. Chapin/s/ Gerald J. Laber*                     
                  Gerald J. Laber/s/ Vincent Sollitto, Jr.*               
               Vincent Sollitto, Jr.


*By /s/ Lawrence D. Firestone
     Lawrence D. Firestone
     Attorney-in-Fact for each of the     above-named directors | Title
 Director, Chairman of the Board
 Director, Chief Executive Officer and President
 (principal executive officer)
 Chief Financial Officer, Treasurer, Senior Vice
 President and Secretary
 (principal accounting and financial officer)
 Director
 Director
 Director
 Director
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---



# 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).
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.2 | Specimen
Series A Preferred Stock certificate is incorporated by reference to Exhibit 4.1 of
Registrants Current Report on Form 8-K dated January 16, 2001.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------

|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 | 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).
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.5 | 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.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.6 | Long
Term Incentive Plan is incorporated by reference to Exhibit 4.3 of Registrant's
                     Registration Statement on Form S-8 (Reg. No. 333-114809).
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.7 | Severance
Agreement between Applied Films Corporation and Thomas T. Edman dated July 26, 2002.
|---- | ----------------------------------------------------------------------------------------------

|10.8 | Severance
Agreement between Applied Films Corporation and Lawrence D. Firestone dated July 26,
                     2002.
|---- | -------------------------------------------------------------------------------------------------------------------------

---



|10.9 | 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).
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.10 | 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.
|----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.11 | 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.
|----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.12 | 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.
|----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.13 | 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.
|----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.14 | 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.
|----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.15 | 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.
|----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.16 | 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.
|----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.17 | 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.
|----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.18 | 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.
|----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.19 | 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.
|----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.20 | 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.
|----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.21 | 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.
|----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.22 | Asset
Purchase Agreement dated September 24, 2002, by and among Applied Films Corporation and
                     Optera, Inc. is incorporated by reference to Exhibit 2.1 of
Registrant's Current Report on Form                      8-K dated September 24, 2002.
|----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.23 | License
Agreement dated September 24, 2002, by and among Applied Films Corporation and Optera,
Inc. is incorporated by reference to Exhibit 2.2 of Registrants Current Report on
Form 8-K dated September 24, 2002.
|----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---



|10.24 | Sublease
dated September 24, 2002, by and among Applied Films Corporation and Optera, Inc. is
incorporated by reference to Exhibit 2.3 of Registrants Current Report on Form 8-K
dated September 24, 2002.
|----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.25 | Services
Agreement dated September 24, 2002, by and among Applied Films Corporation and Optera,
Inc. is incorporated by reference to Exhibit 2.4 of Registrants Current Report on
Form 8-K dated September 24, 2002.
|----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.26 | Noncompetition
Agreement dated September 24, 2002, by and among Applied Films Corporation and Optera,
Inc. is incorporated by reference to Exhibit 2.5 of Registrants Current Report on
Form 8-K dated September 24, 2002.
|----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.27 | Supply
Agreement dated September 24, 2002, by and among Applied Films Corporation and Optera,
Inc. is incorporated by reference to Exhibit 2.6 of Registrants Current Report on
Form 8-K dated September 24, 2002.
|----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|21.1* | Subsidiaries
of Applied Films Corporation
|----- | -----------------------------------------

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

|23.2 | Consent
of Pricewaterhouse Coopers Zhong Tian
|---- | ---------------------------------------------

|24.1* | Power
of Attorney (included on the signature page hereto).
|----- | ----------------------------------------------------------

|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 409 of the Sarbanes-Oxley Act of 2002.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

*Previously filed

---



Exhibit 23.2

PRICEWATERHOUSECOOPERS

PricewaterhouseCoopers Zhong TianCPAs Limited Company11th
FloorPricewaterhouseCoopers
Center202 Hu Bin RoadShanghai 200021 Peoples Republic of
ChinaTelephone +86 (21) 6123 8888 Facsimile +86 (21) 6123 8800

18 May 2005

# CONSENT OF INDEPENDENT
ACCOUNTANTS

To: Applied Films
Corporation

We hereby consent to the
incorporation by reference in the Registration Statement on Form S-3 No. 333-59984 and the
registration Statements on Forms S-8 Nos. 333-114809, 333-75164, 333-56376, 333-56378,
333-38426, 333-95367, 333-51175, 333-47951, and 333-47967 of Applied Films Corporation of
our report dated 17 May 2005 relating to the financial statements of Suzhou NSG AFC Thin
Films Electronics Co., Ltd., which appears in the Annual Report on Form 10-K/A (Amendment
No. 1) of Applied Films Corporation.

/s/
PricewaterhouseCoopers Zhong Tian CPAs Limited Company

PricewaterhouseCoopers
Zhong Tian CPAs Limited CompanyCPAs Co., Ltd.

---



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.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Date: May 18, 2005

| | /s/ Thomas T. Edman                      
   Thomas T. Edman
   Chief Executive Officer and President
| | -----------------------------------------------------------------------------------------------------

---



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.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Date: May 18, 2005

| | /s/ Lawrence D. Firestone              
  Lawrence D. Firestone
  Chief Financial Officer, Treasurer,
  Senior Vice President and Secretary
| | -------------------------------------------------------------------------------------------------------------------------------------------

---



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 26, 2004 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 26, 2003 fairly presents, in all material respects, the
          financial condition and results of operations of Applied Films Corporation.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Dated: May 18, 2005

| | /s/ Thomas T. Edman                       
   Thomas T. Edman
   Chief Executive Officer and President/s/ Lawrence D. Firestone                
   Lawrence D. Firestone
   Chief 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.