##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
 For the Quarterly Period Ended June 30, 2007
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
 Commission File Number 001-33027
 HOME DIAGNOSTICS, INC.
  Delaware
    
    22-2594392(State or other jurisdiction of incorporation
    
    (I.R.S. Employer Identification No.)or organization)
 2400 Northwest 55th Court
Fort Lauderdale, Florida 33309    (954) 677-9201
  x  o
  o o þ
 o  x




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##### 



HOME DIAGNOSTICS, INC.
INDEX
 PagePart I
    
    FINANCIAL SUMMARYItem 1.
    
    Financial StatementsCondensed Consolidated Balance Sheets as of December 31, 2006 and June 30, 2007 (Unaudited)
    
    
    3Condensed Consolidated Statements of Operations for the Three and Six Months Ended June
30, 2006 and 2007 (Unaudited)
    
    
    4Condensed Consolidated Statement of Changes in Stockholders Equity for the Six Months
Ended June 30, 2007 (Unaudited)
    
    
    5Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2006
and 2007 (Unaudited)
    
    
    6Notes to Condensed Consolidated Financial Statements (Unaudited)
    
    
    7Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    14Item 3.
    
    Quantitative and Qualitative Disclosures About Market Risk
    
    
    19Item 4T.
    
    Controls and Procedures
    
    
    19Part II
    
    OTHER INFORMATION
    
    
    20Item 1.
    
    Legal Matters
    
    
    20Item 1A.
    
    Risk Factors
    
    
    20Item 2.
    
    Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    21Item 4.
    
    Submission of Matters to a Vote of Security Holders
    
    
    21Item 6.
    
    Exhibits
    
    
    21SIGNATURES
    
    
    22EXHIBIT INDEX
    
    
    23CERTIFICATIONSEx-31.1 Section 302 Certification of CEOEx-31.2 Section 302 Certification of CFOEx-32.1 Section 906 Certification of CEOEx-32.2 Section 906 Certification of CFO
  2




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Part I. FINANCIAL SUMMARY
 HOME DIAGNOSTICS, INC. AND SUBSIDIARIES
 
 Item 1. Financial Statements
 
 
  December 31,
    
    
    June 30,2006
    
    
    2007(unaudited)AssetsCurrent assets:Cash and cash equivalents
    
    $
    26,487,163
    
    
    $
    32,704,270Accounts receivable, net
    
    
    17,010,471
    
    
    
    16,632,389Inventories, net
    
    
    12,389,654
    
    
    
    12,230,365Prepaid expenses and other current assets
    
    
    912,117
    
    
    
    1,319,963Income taxes receivable
    
    
    1,455,689
    
    
    
    1,445,100Deferred tax asset
    
    
    4,709,201
    
    
    
    4,845,931Total current assets
    
    
    62,964,295
    
    
    
    69,178,018Property and equipment, net
    
    
    17,932,833
    
    
    
    21,137,554Goodwill
    
    
    35,573,462
    
    
    
    35,573,462Other intangible assets, net
    
    
    1,048,781
    
    
    
    840,856Deferred tax asset
    
    
    15,140
    
    
    
    781,090Other assets, net
    
    
    141,504
    
    
    
    141,068Total assets
    
    $
    117,676,015
    
    
    $
    127,652,048Liabilities and Stockholders EquityCurrent liabilities:Accounts payable
    
    $
    6,655,728
    
    
    $
    8,628,821Accrued liabilities
    
    
    13,907,664
    
    
    
    14,718,129Total current liabilities
    
    
    20,563,392
    
    
    
    23,346,950Commitments and contingencies (Note 10)
    
    
    
    
    
    
    Stockholders equity:Common stock, $.01 par value; 60,000,000
shares authorized 17,697,691 and 18,122,592
shares issued and outstanding at December
31, 2006 and June 30, 2007, respectively
    
    
    176,977
    
    
    
    181,226Additional paid-in capital
    
    
    93,967,063
    
    
    
    96,660,137Retained earnings
    
    
    2,940,376
    
    
    
    7,344,245Accumulated other comprehensive income
    
    
    28,207
    
    
    
    119,490Total stockholders equity
    
    
    97,112,623
    
    
    
    104,305,098Total liabilities and stockholders equity
    
    $
    117,676,015
    
    
    $
    127,652,048
 The accompanying notes are an integral part of these condensed consolidated financial statements.
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HOME DIAGNOSTICS, INC. AND SUBSIDIARIES
 
 
 Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2006
    
    
    2007
    
    
    2006
    
    
    2007Net sales
    
    $
    28,548,725
    
    
    $
    28,050,322
    
    
    $
    55,701,454
    
    
    $
    56,150,372Cost of sales
    
    
    11,439,786
    
    
    
    11,951,257
    
    
    
    22,465,137
    
    
    
    23,155,594Gross profit
    
    
    17,108,939
    
    
    
    16,099,065
    
    
    
    33,236,317
    
    
    
    32,994,778Operating expensesSelling, general and administrative
(including stock-based compensation
expense of $617,490 and $439,021 and
$1,189,874 and $739,965 for the three and
six months ended June 30, 2006 and 2007,
respectively)
    
    
    11,104,033
    
    
    
    11,566,718
    
    
    
    22,079,186
    
    
    
    23,107,791Research and development
    
    
    1,926,085
    
    
    
    2,257,017
    
    
    
    3,746,848
    
    
    
    4,269,187Total operating expenses
    
    
    13,030,118
    
    
    
    13,823,735
    
    
    
    25,826,034
    
    
    
    27,376,978Income from operations
    
    
    4,078,821
    
    
    
    2,275,330
    
    
    
    7,410,283
    
    
    
    5,617,800Other (expense) incomeChange in fair value of warrant put option
    
    
    (584,440
    )
    
    
    
    
    
    
    (1,275,451
    )
    
    
    Interest (expense) income, net
    
    
    (73,622
    )
    
    
    425,275
    
    
    
    (160,935
    )
    
    
    770,281Other, net
    
    
    (41,411
    )
    
    
    (69,091
    )
    
    
    (100,981
    )
    
    
    51,607Total other (expense) income
    
    
    (699,473
    )
    
    
    356,184
    
    
    
    (1,537,367
    )
    
    
    821,888Income before provision for income taxes
    
    
    3,379,348
    
    
    
    2,631,514
    
    
    
    5,872,916
    
    
    
    6,439,688Provision for income taxes
    
    
    1,585,595
    
    
    
    792,237
    
    
    
    2,684,510
    
    
    
    2,125,098Net income
    
    $
    1,793,753
    
    
    $
    1,839,277
    
    
    $
    3,188,406
    
    
    $
    4,314,590Earnings per common share:Basic
    
    $
    0.13
    
    
    $
    0.10
    
    
    $
    0.23
    
    
    $
    0.24Diluted
    
    $
    0.11
    
    
    $
    0.09
    
    
    $
    0.20
    
    
    $
    0.22Weighted average shares used in computing
earnings per common share:Basic
    
    
    13,713,463
    
    
    
    18,012,483
    
    
    
    13,711,415
    
    
    
    17,871,000Diluted
    
    
    15,902,531
    
    
    
    19,815,186
    
    
    
    15,813,216
    
    
    
    19,773,857
 The accompanying notes are an integral part of these condensed consolidated financial
statements.
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HOME DIAGNOSTICS, INC. AND SUBSIDIARIES
 
 
 Common Stock
    
    
    
    
    
    
    
    
    
    
    AccumulatedAdditional
    
    
    
    
    
    
    other
    
    
    TotalNumber of
    
    
    
    
    
    
    paid-in
    
    
    Retained
    
    
    comprehensive
    
    
    stockholdersshares
    
    
    Amount
    
    
    capital
    
    
    earnings
    
    
    income (loss)
    
    
    equityBalance at December 31, 2006
    
    
    17,697,691
    
    
    $
    176,977
    
    
    $
    93,967,063
    
    
    $
    2,940,376
    
    
    $
    28,207
    
    
    $
    97,112,623Cumulative effect of change in
accounting for uncertainties in income
taxes (Note 8)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    89,279
    
    
    
    
    
    
    
    89,279Stock-based compensation expense
    
    
    
    
    
    
    
    
    
    
    739,965
    
    
    
    
    
    
    
    
    
    
    
    739,965Stock options and warrants exercised,
including tax benefit of $668,502
    
    
    424,901
    
    
    
    4,249
    
    
    
    1,953,109
    
    
    
    
    
    
    
    
    
    
    
    1,957,358Comprehensive income:Foreign
currency translation adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    91,283
    
    
    
    91,283Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,314,590
    
    
    
    
    
    
    
    4,314,590Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,314,590
    
    
    
    91,283
    
    
    
    4,405,873Balance at June 30, 2007
    
    
    18,122,592
    
    
    $
    181,226
    
    
    $
    96,660,137
    
    
    $
    7,344,245
    
    
    $
    119,490
    
    
    $
    104,305,098
 The accompanying notes are an integral part of these condensed consolidated financial
statements.
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HOME DIAGNOSTICS, INC. AND SUBSIDIARIES
 
 
 Six Months EndedJune 30,2006
    
    
    2007Cash flows from operating activitiesNet income
    
    $
    3,188,406
    
    
    $
    4,314,590Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization
    
    
    2,066,357
    
    
    
    1,995,746Amortization of deferred financing and debt issuance costs
    
    
    23,464
    
    
    
    4,509Loss on asset disposal
    
    
    43,821
    
    
    
    15,688Bad debt expense
    
    
    30,000
    
    
    
    24,988Deferred income taxes
    
    
    (887,025
    )
    
    
    (643,333
    )Change in fair value of warrant put option
    
    
    1,275,451
    
    
    
    Stock-based compensation expense
    
    
    1,189,874
    
    
    
    739,965Changes in assets and liabilities:Accounts receivable
    
    
    (1,823,298
    )
    
    
    353,094Inventories
    
    
    1,510,323
    
    
    
    127,294Prepaid expenses and other current and non-current assets
    
    
    (1,069,305
    )
    
    
    (407,846
    )Income taxes receivable and payable
    
    
    (1,750,915
    )
    
    
    783,917Accounts payable
    
    
    (506,643
    )
    
    
    1,973,093Accrued liabilities
    
    
    299,444
    
    
    
    (132,931
    )Net cash provided by operating activities
    
    
    3,589,954
    
    
    
    9,148,774Cash flows from investing activitiesCapital expenditures
    
    
    (5,495,640
    )
    
    
    (5,008,544
    )Net cash used in investing activities
    
    
    (5,495,640
    )
    
    
    (5,008,544
    )Cash flows from financing activitiesRepayment of term loans and notes payable
    
    
    (1,333,333
    )
    
    
    Repayment of notes payable to related party
    
    
    (1,300,000
    )
    
    
    Borrowings on line of credit, net of repayments
    
    
    1,177,000
    
    
    
    Payment of debt financing costs
    
    
    
    
    
    
    (4,317
    )Proceeds from exercise of stock options
    
    
    13,274
    
    
    
    1,288,856Tax benefit from stock options
    
    
    
    
    
    
    668,502Net cash (used in) provided by financing activities
    
    
    (1,443,059
    )
    
    
    1,953,041Effect of exchange rate changes on cash and cash equivalents
    
    
    226,100
    
    
    
    123,836Net (decrease) increase in cash and cash equivalents
    
    
    (3,122,645
    )
    
    
    6,217,107Cash and cash equivalentsBeginning of period
    
    
    3,483,424
    
    
    
    26,487,163End of period
    
    $
    360,779
    
    
    $
    32,704,270Supplemental cash flows disclosures:Cash paid during the period for:Interest
    
    $
    158,848
    
    
    $
    Income taxes
    
    $
    5,680,000
    
    
    $
    1,584,510
 The accompanying notes are an integral part of these condensed consolidated financial statements.
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HOME DIAGNOSTICS, INC. AND SUBSIDIARIES
 
 
 1. Basis of presentation
    Use of estimates
  Product warranties
  Recent accounting pronouncements
   7




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Reclassifications
  2. Stock option plans
   WeightedRange of
    
    
    averageNumber of
    
    
    exercise
    
    
    exerciseshares
    
    
    prices
    
    
    pricesOutstanding at December 31, 2006
    
    
    3,274,756
    
    
    $
    2.99-12.00
    
    
    $
    4.40Granted
    
    
    37,500
    
    
    $
    10.85
    
    
    $
    10.85Exercised
    
    
    (409
    )
    
    $
    3.63
    
    
    $
    3.63Forfeited/ Cancelled
    
    
    (1,760
    )
    
    $
    3.8512.00
    
    
    $
    8.48Outstanding at March 31, 2007
    
    
    3,310,087
    
    
    $
    2.9912.00
    
    
    $
    4.47Granted
    
    
    334,400
    
    
    $
    11.2011.58
    
    
    $
    11.20Exercised
    
    
    (396,692
    )
    
    $
    2.994.27
    
    
    $
    3.20Forfeited/ Cancelled
    
    
    (3,000
    )
    
    $
    11.5812.00
    
    
    $
    11.72Outstanding at June 30, 2007
    
    
    3,244,795
    
    
    
    $2.9912.00
    
    
    $
    5.38Exercisable at June 30, 2007
    
    
    2,454,555
    
    
    $
    2.9912.00
    
    
    $
    3.66
  Six Months EndedJune 30,
    
    
    June 30,2006
    
    
    2007Weighted average expected term of options (in years)
    
    
    6.00
    
    
    
    4.60Expected volatility factor (based on peer group volatility)
    
    
    30.00
    %
    
    
    30.00
    %Expected dividend yield
    
    none
        
    noneWeighted average risk-free interest rate (based on applicable U.S. Treasury rates)
    
    
    4.85
    %
    
    
    4.91
    %
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3. Inventory, net
  December 31,
    
    
    June 30,2006
    
    
    2007Raw materials
    
    $
    6,873,057
    
    
    $
    6,204,326Work-in-process
    
    
    3,360,650
    
    
    
    4,571,650Finished goods
    
    
    2,155,947
    
    
    
    1,454,389$
    12,389,654
    
    
    $
    12,230,365
 4. Property and equipment, net
  December 31,
    
    
    June 30,2006
    
    
    2007Machinery and equipment
    
    $
    15,404,014
    
    
    $
    14,768,447Leasehold improvements
    
    
    3,004,636
    
    
    
    3,448,486Furniture, fixtures, and office equipment
    
    
    2,841,022
    
    
    
    3,079,163Computer software
    
    
    2,069,489
    
    
    
    2,160,863Equipment not yet placed in service
    
    
    11,042,883
    
    
    
    14,747,41334,362,044
    
    
    
    38,204,372Less: Accumulated depreciation and amortization
    
    
    (16,429,211
    )
    
    
    (17,066,818
    )$
    17,932,833
    
    
    $
    21,137,554
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5. Accrued liabilities
  December 31,
    
    
    June 30,2006
    
    
    2007Accrued salaries and benefits
    
    $
    3,977,850
    
    
    $
    3,858,723Sales returns reserve
    
    
    5,588,068
    
    
    
    4,899,068Product warranty and customer liabilities
    
    
    3,399,119
    
    
    
    3,866,606Other accrued liabilities
    
    
    942,627
    
    
    
    2,093,732$
    13,907,664
    
    
    $
    14,718,129
 6. Credit facility and long-term debt
   7. Warrant put option
  10




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8. Income taxes
     9. Earnings per common share
    Three months ended
    
    
    Six months endedJune 30,
    
    
    June 30,2006
    
    
    2007
    
    
    2006
    
    
    2007Weighted average number of common shares outstanding for
basic earnings per share
    
    
    13,713,463
    
    
    
    18,012,483
    
    
    
    13,711,415
    
    
    
    17,871,000Effect of dilutive securities: stock options and warrants
    
    
    2,189,068
    
    
    
    1,802,703
    
    
    
    2,101,801
    
    
    
    1,902,857Weighted average number of common and common equivalent
shares outstanding
    
    
    15,902,531
    
    
    
    19,815,186
    
    
    
    15,813,216
    
    
    
    19,773,857
 11




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10. Contingencies
 Litigation
  Roche Litigation
  Brandt Litigation
  11. Subsequent Events
  12




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13




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ITEM 2. Managements discussion and analysis of financial condition and results of operations
  Company overview
     
    
    Retailthe retail channel generates the majority of sales of blood
glucose monitoring products in the United States and includes chain
drug stores, food stores and mass merchandisers. We sell our products
into the retail channel on a direct basis or through domestic
distributors. Our retail net sales include products we sell directly
into the retail channel for the larger food and drug retailers.
    
    Domestic distributionthe domestic distribution channel includes sales
to domestic wholesalers, including AmerisourceBergen, Cardinal Health,
McKesson, and Invacare, who sell products to independent and chain
food and drug retailers, primary and long-term care providers, durable
medical equipment suppliers and mail service providers.
    
    Mail servicethe mail service channel includes sales to leading mail
service providers, who market their products primarily to the Medicare
population.
    
    Internationalthe international channel consists primarily of sales to
distributors in Latin America, the United Kingdom, Germany, Australia,
Canada and China. In May 2005, we acquired our United Kingdom
distributor, and we continually evaluate opportunities to partner with
or acquire distributors in other international markets.
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Three Months Ended June 30,
    
    Six Months Ended June 30,2006
    
    
    
    
    
    2007
    
    
    
    
    
    2006
    
    
    
    
    
    2007Net sales by channel:Retail
    
    $
    6,642,961
    
    
    
    23.3
    %
    
    $
    6,216,104
    
    
    
    22.2
    %
    
    $
    12,032,406
    
    
    
    21.6
    %
    
    $
    12,750,950
    
    
    
    22.7
    %Domestic distribution
    
    
    16,213,313
    
    
    
    56.8
    %
    
    
    14,183,831
    
    
    
    50.6
    %
    
    
    31,283,828
    
    
    
    56.2
    %
    
    
    29,066,773
    
    
    
    51.8
    %Mail service
    
    
    3,206,292
    
    
    
    11.2
    %
    
    
    3,604,279
    
    
    
    12.8
    %
    
    
    6,451,400
    
    
    
    11.6
    %
    
    
    7,352,413
    
    
    
    13.1
    %International
    
    
    2,486,159
    
    
    
    8.7
    %
    
    
    4,046,108
    
    
    
    14.4
    %
    
    
    5,933,820
    
    
    
    10.6
    %
    
    
    6,980,236
    
    
    
    12.4
    %Net sales
    
    $
    28,548,725
    
    
    
    100.0
    %
    
    $
    28,050,322
    
    
    
    100.0
    %
    
    $
    55,701,454
    
    
    
    100.0
    %
    
    $
    56,150,372
    
    
    
    100.0
    %
    Results of operations
  Three Months Ended June 30,
    
    Six Months Ended June 30,2006
    
    
    
    
    
    2007
    
    
    
    
    
    2006
    
    
    
    
    
    2007Net sales
    
    $
    28,548,725
    
    
    
    100.0
    %
    
    $
    28,050,322
    
    
    
    100.0
    %
    
    $
    55,701,454
    
    
    
    100.0
    %
    
    $
    56,150,372
    
    
    
    100.0
    %Cost of sales
    
    
    11,439,786
    
    
    
    40.1
    %
    
    
    11,951,257
    
    
    
    42.6
    %
    
    
    22,465,137
    
    
    
    40.3
    %
    
    
    23,155,594
    
    
    
    41.2
    %Gross profit
    
    
    17,108,939
    
    
    
    59.9
    %
    
    
    16,099,065
    
    
    
    57.4
    %
    
    
    33,236,317
    
    
    
    59.7
    %
    
    
    32,994,778
    
    
    
    58.8
    %Operating Expenses:Selling, general and administrative
    
    
    11,104,033
    
    
    
    38.9
    %
    
    
    11,566,718
    
    
    
    41.2
    %
    
    
    22,079,186
    
    
    
    39.7
    %
    
    
    23,107,791
    
    
    
    41.2
    %Research and development
    
    
    1,926,085
    
    
    
    6.7
    %
    
    
    2,257,017
    
    
    
    8.1
    %
    
    
    3,746,848
    
    
    
    6.7
    %
    
    
    4,269,187
    
    
    
    7.6
    %Total operating expenses
    
    
    13,030,118
    
    
    
    45.6
    %
    
    
    13,823,735
    
    
    
    49.3
    %
    
    
    25,826,034
    
    
    
    46.4
    %
    
    
    27,376,978
    
    
    
    48.8
    %Income from operations
    
    
    4,078,821
    
    
    
    14.3
    %
    
    
    2,275,330
    
    
    
    8.1
    %
    
    
    7,410,283
    
    
    
    13.3
    %
    
    
    5,617,800
    
    
    
    10.0
    %Increase in fair value of warrant put option
    
    
    (584,440
    )
    
    
    (2.1
    %)
    
    
    
    
    
    
    0.0
    %
    
    
    (1,275,451
    )
    
    
    (2.3
    %)
    
    
    
    
    
    
    0.0
    %Interest expense, net
    
    
    (73,622
    )
    
    
    (0.3
    %)
    
    
    425,275
    
    
    
    1.5
    %
    
    
    (160,935
    )
    
    
    (0.3
    %)
    
    
    770,281
    
    
    
    1.4
    %Other, net
    
    
    (41,411
    )
    
    
    (0.1
    %)
    
    
    (69,091
    )
    
    
    (0.2
    %)
    
    
    (100,981
    )
    
    
    (0.2
    %)
    
    
    51,607
    
    
    
    0.1
    %Income before income taxes
    
    
    3,379,348
    
    
    
    11.8
    %
    
    
    2,631,514
    
    
    
    9.4
    %
    
    
    5,872,916
    
    
    
    10.5
    %
    
    
    6,439,688
    
    
    
    11.5
    %Provision for income taxes
    
    
    (1,585,595
    )
    
    
    (5.5
    %)
    
    
    (792,237
    )
    
    
    (2.8
    %)
    
    
    (2,684,510
    )
    
    
    (4.8
    %)
    
    
    (2,125,098
    )
    
    
    (3.8
    %)Net income
    
    $
    1,793,753
    
    
    
    6.3
    %
    
    $
    1,839,277
    
    
    
    6.6
    %
    
    $
    3,188,406
    
    
    
    5.7
    %
    
    $
    4,314,590
    
    
    
    7.7
    %
 15




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##### Table of Contents



Three months ended June 30, 2007 as compared to three months ended June 30, 2006
          16




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##### Table of Contents



Six months ended June 30, 2007 as compared to six months ended June 30, 2006
        17




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##### Table of Contents



Liquidity and capital resources
        18




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##### Table of Contents



Caution concerning forward-looking statements
  
 Item 3. Quantitative and qualitative disclosures about market risk
  
 Item 4T. Controls and procedures
 Evaluation of Disclosure Controls and Procedures
  Changes in Internal Control
  19




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##### Table of Contents



Part II  OTHER INFORMATION
 
 Item 1. Legal Proceedings
  Roche Litigation
  Brandt Litigation
  
 Item 1A. Risk Factors
  Competitive bidding for durable medical equipment suppliers could negatively affect our business.
  20




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##### Table of Contents



Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
 Use of Proceeds from Sales of Registered Securities
    
 Item 4. Submission of Matters to a Vote of Security Holders
  1)
    
    To elect two Class I directors as members of the Board of Directors of the Company,
each to serve for a term of three years or until his successor has been elected and
qualified; and2)
    
    To ratify the selection of PricewaterhouseCoopers LLP as independent auditors of the
Company for the fiscal year ending December 31, 2007.
  Director Nominees
    
    Votes Cast For
    
    Votes WithheldDonald P. Parson
    
    
    11,994,335
    
    
    
    3,822,290Tom Watlington
    
    
    15,738,258
    
    
    
    78,367
  Votes Cast For
    
    Votes Cast Against
    
    Votes Abstained15,775,630
    
    
    39,495
    
    
    
    1,500
 
 Item 6. Exhibits
  21




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##### Table of Contents



SIGNATURES
  HOME DIAGNOSTICS, INC.Date: August 10, 2007
    
    By: /s/ J. RICHARD DAMRON, JR.J. Richard Damron, Jr.President and Chief Executive Officer(principal executive officer) and
DirectorDate: August 10, 2007
    
    By: /s/ RONALD L. RUBINRonald L. RubinVice President and Chief Financial Officer(principal financial and accounting officer)
 22




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##### Table of Contents



Exhibit Index
 ExhibitNumber
    
    
    
    Description31.1*
    
    
    
    Certification of Chief Executive Officer pursuant to
Rule 13a-14(a) under the Securities Exchange Act of
1934.31.2*
    
    
    
    Certification of Chief Financial Officer pursuant to
Rule 13a-14(a) under the Securities Exchange Act of
1934.32.1*
    
    
    
    Certification of Chief Executive Officer, Pursuant to
18 U.S.C. Section 1350.32.2*
    
    
    
    Certification of Chief Financial Officer, Pursuant to
18 U.S.C. Section 1350.
 
 *
    
    Filed herewith 23