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UNITED STATES SECURITIES AND EXCHANGE
COMMISSION

Washington, D.C. 20549



Form 10-Q



(Mark One)

|x |  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- |  | ---------------------------------------------------------------------------------------



For the quarterly period ended: December 31, 2002



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: 0-27887



Collectors Universe, Inc.

(Exact name of registrant as specified in its charter)



|Delaware (State or other jurisdiction of
Incorporation) |  | 33-0846191 (I.R.S. Employer Identification
Number)
|------------------------------------------------------- |  | --------------------------------------------------



1921
E. Alton Avenue, Santa Ana, California 92705

(Address of principal executive offices and zip code)



Registrants telephone number, including area code:
(949) 567-1234



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 the number of shares outstanding of
each of the issuers classes of common stock, as of the latest practicable date.



|Class                        |  | Outstanding at February 12, 2003
|---------------------------- |  | --------------------------------
|Common Stock $.001 Par Value |  | 6,131,437                       



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COLLECTORS UNIVERSE, INC.



INDEX



|                                                                                                      |  |                                                                                                                           |  | Page No.
|----------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------- |  | --------
|                                                                                                     
|Part I.                                                                                               |  | Financial Information                                                                                                     |  |         
|                                                                                                     
|Item 1.                                                                                               |  | Financial Statements                                                                                                      |  |         
|                                                                                                     
|                                                                                                      |  | Condensed Consolidated Balance Sheets as of December 31, 2002 and June 30, 2002 (unaudited)                               |  | 1       
|                                                                                                     
|                                                                                                      |  | Condensed Consolidated Statements of Operations for the three and six-months ended December 31, 2002 and 2001 (unaudited) |  | 2       
|                                                                                                     
|                                                                                                      |  | Condensed Consolidated Statements of Cash Flows for the three and six months ended December 31, 2002 and 2001 (unaudited) |  | 3       
|                                                                                                     
|                                                                                                      |  | Notes to Condensed Consolidated Financial Statements (unaudited)                                                          |  | 4       
|                                                                                                     
|Item 2.                                                                                               |  | Managements Discussion and Analysis of Financial Condition and Results of Operations                                     |  | 11      
|                                                                                                     
|Item 3.                                                                                               |  | Quantitative and Qualitative Disclosures About Market Risk                                                                |  | 19      
|                                                                                                     
|Item 4.                                                                                               |  | Controls and Procedures                                                                                                   |  | 20      
|                                                                                                     
|Part II.                                                                                              |  | Other Information                                                                                                         |  |         
|                                                                                                     
|Item 5.                                                                                               |  | Submission of Matters to a Vote of the Security Holders                                                                   |  | 21      
|                                                                                                     
|Item 6.                                                                                               |  | Exhibits and Reports on Form 8-K and Exhibits                                                                             |  | 21      
|                                                                                                     
|SIGNATURES                                                                                            |  |                                                                                                                           |  | S-1     
|                                                                                                     
|Certifications of Chief Executive Officer under Section 302 of the Sarbanes-Oxley Act                 |  | S-2                                                                                                                      
|                                                                                                     
|Certifications of Chief Financial Officer under Section 302 of the Sarbanes-Oxley Act                 |  | S-3                                                                                                                      
|                                                                                                     
|EXHIBITS                                                                                              |  |                                                                                                                           |  |         
|                                                                                                     
|Exhibit 99.1    
Certification of Chief Executive Officer under Section 906 of the Sarbanes-Oxley Act |  |                                                                                                                          
|                                                                                                     
|Exhibit 99.2    
Certification of Chief Financial Officer under Section 906 of the Sarbanes-Oxley Act |  |                                                                                                                          





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PART I.    FINANCIAL INFORMATION



ITEM 1.    FINANCIAL STATEMENTS



COLLECTORS UNIVERSE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

as of December 31, 2002 and June 30, 2002

(in thousands, except share data)

(unaudited)



|                                                                                                                                      |  | December 31, 2002 |   |  | June 30, 2002 |       
|------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------- | - |  | ------------- | ------
|ASSETS                                                                                                                                |  |                   |   |  |               |       
|Current assets:                                                                                                                       |  |                   |   |  |               |       
|Cash and cash equivalents                                                                                                             |  | $   6,633         |   |  | $             | 4,947 
|Accounts receivable, net of allowance for doubtful accounts of $927 (December) and $293
(June)                                        |  | 6,060             |   |  |               | 7,291 
|Auction consignment advances                                                                                                          |  | 2,213             |   |  |               | 3,359 
|Inventories, net                                                                                                                      |  | 7,645             |   |  |               | 8,166 
|Prepaid expenses and other                                                                                                            |  | 664               |   |  |               | 513   
|Notes receivable                                                                                                                      |  | 481               |   |  |               | 481   
|Note receivable from an officer                                                                                                       |  |                  |   |  |               | 381   
|Refundable income taxes                                                                                                               |  | 965               |   |  |               | 1,191 
|Deferred income taxes, current portion                                                                                                |  | 648               |   |  |               | 648   
|                                                                                                                                      |  |                   |   |  |               |       
|Total current assets                                                                                                                  |  | 25,309            |   |  |               | 26,977
|Property and equipment, net                                                                                                           |  | 1,488             |   |  |               | 1,736 
|Notes receivable, net of current portion                                                                                              |  | 243               |   |  |               | 476   
|Goodwill                                                                                                                              |  | 1,477             |   |  |               | 14,961
|Intangible assets, net                                                                                                                |  | 55                |   |  |               | 93    
|Deferred income taxes                                                                                                                 |  | 5,759             |   |  |               | 1,074 
|Other assets                                                                                                                          |  | 265               |   |  |               | 192   
|                                                                                                                                      |  |                   |   |  |               |       
|                                                                                                                                      |  | $ 34,596          |   |  | $             | 45,509
|                                                                                                                                      |  |                   |   |  |               |       
|LIABILITIES AND STOCKHOLDERS EQUITY                                                                                                  |  |                   |   |  |               |       
|Current liabilities:                                                                                                                  |  |                   |   |  |               |       
|Accounts payable                                                                                                                      |  | $      704        |   |  | $             | 878   
|Consignor payable                                                                                                                     |  | 3,445             |   |  |               | 4,598 
|Accrued liabilities                                                                                                                   |  | 761               |   |  |               | 736   
|Accrued compensation and benefits                                                                                                     |  | 831               |   |  |               | 967   
|Deferred revenue                                                                                                                      |  | 850               |   |  |               | 921   
|                                                                                                                                      |  |                   |   |  |               |       
|Total current liabilities                                                                                                             |  | 6,591             |   |  |               | 8,100 
|Deferred rent                                                                                                                         |  | 379               |   |  |               | 281   
|Commitment and contingencies                                                                                                          |  |                   |   |  |               |       
|Stockholders equity:                                                                                                                 |  |                   |   |  |               |       
|Preferred stock, $.001 par value; 3,000 shares authorized; no shares issued or
outstanding                                            |  |                  |   |  |               |      
|Common stock, $.001 par value; 30,000 shares authorized; issued and outstanding 6,129
at December 31, 2002 and 6,381 at June 30, 2002 |  | 25                |   |  |               | 26    
|Additional paid-in capital                                                                                                            |  | 40,873            |   |  |               | 41,248
|Accumulated deficit                                                                                                                   |  | (12,251           | ) |  |               | (3,125
|Treasury stock, at cost (125 shares)                                                                                                  |  | (1,021            | ) |  |               | (1,021
|                                                                                                                                      |  |                   |   |  |               |       
|Total stockholders equity                                                                                                            |  | 27,626            |   |  |               | 37,128
|                                                                                                                                      |  |                   |   |  |               |       
|                                                                                                                                      |  | $ 34,596          |   |  | $             | 45,509
|                                                                                                                                      |  |                   |   |  |               |       



See
accompanying notes to condensed consolidated financial statements



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COLLECTORS UNIVERSE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)



|                                                                            |  | Three Months Ended |        |   | Six Months Ended  |  
|--------------------------------------------------------------------------- |  | ------------------ | ------ | - | ----------------- | -
|                                                                            |  | December 31, 2002  |        |   | December 31, 2001 |  
|Net revenues                                                                |  | $                  | 11,312 |   |                   | $
|Cost of revenues                                                            |  |                    | 7,144  |   |                   |  
|                                                                            |  |                    |        |   |                   |  
|Gross profit                                                                |  |                    | 4,168  |   |                   |  
|Selling, general and administrative expenses                                |  |                    | 5,029  |   |                   |  
|Allowance for doubtful accounts                                             |  |                    | 646    |   |                   |  
|Amortization of goodwill and intangibles                                    |  |                    | 18     |   |                   |  
|Stock-based compensation                                                    |  |                    |       |   |                   |  
|                                                                            |  |                    |        |   |                   |  
|Total operating expenses                                                    |  |                    | 5,693  |   |                   |  
|Operating loss                                                              |  |                    | (1,525 | ) |                   |  
|Interest income, net                                                        |  |                    | 100    |   |                   |  
|Other income                                                                |  |                    | 9      |   |                   |  
|                                                                            |  |                    |        |   |                   |  
|Loss before income taxes                                                    |  |                    | (1,416 | ) |                   |  
|Benefit from income taxes                                                   |  |                    | (967   | ) |                   |  
|                                                                            |  |                    |        |   |                   |  
|Net loss before cumulative effect of change in accounting principle         |  | $                  | (449   | ) |                   | $
|Cumulative effect of change in accounting principle, net of taxes of
$4,511 |  |                    |       |   |                   |  
|                                                                            |  |                    |        |   |                   |  
|Net loss                                                                    |  | $                  | (449   | ) |                   | $
|                                                                            |  |                    |        |   |                   |  
|Loss per common share  basic                                               |  |                    |        |   |                   |  
|Before cumulative effect of accounting change                               |  | $                  | (0.07  | ) |                   | $
|Cumulative effect of accounting change                                      |  |                    |       |   |                   |  
|                                                                            |  |                    |        |   |                   |  
|Net loss  basic                                                            |  | $                  | (0.07  | ) |                   | $
|                                                                            |  |                    |        |   |                   |  
|Loss per common share  diluted                                             |  |                    |        |   |                   |  
|Before cumulative effect of accounting change                               |  | $                  | (0.07  | ) |                   | $
|Cumulative effect of accounting change                                      |  |                    |       |   |                   |  
|                                                                            |  |                    |        |   |                   |  
|Net loss  diluted                                                          |  | $                  | (0.07  | ) |                   | $
|                                                                            |  |                    |        |   |                   |  
|Weighted average shares outstanding:                                        |  |                    |        |   |                   |  
|Basic                                                                       |  |                    | 6,129  |   |                   |  
|Diluted                                                                     |  |                    | 6,129  |   |                   |  

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|* |  | All share and per share data have been adjusted for the one-for-four reverse stock split effective December 9, 2002.
|- |  | --------------------------------------------------------------------------------------------------------------------



See accompanying notes to condensed consolidated financial
statements



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COLLECTORS UNIVERSE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands, except share data)

(unaudited)



|                                                                                                                                                                                                                                                                                            |  | Six Months Ended December 31, |       
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------------------- | ------
|                                                                                                                                                                                                                                                                                            |  | 2002                          |       
|OPERATING ACTIVITIES:                                                                                                                                                                                                                                                                       |  |                               |       
|Net loss                                                                                                                                                                                                                                                                                    |  | $                             | (9,126
|Adjustments to reconcile net loss to net cash provided by operating
activities:                                                                                                                                                                                                             |  |                               |       
|Depreciation and amortization                                                                                                                                                                                                                                                               |  |                               | 399   
|Loss on disposal of fixed assets                                                                                                                                                                                                                                                            |  |                               | 5     
|Cumulative effect of accounting change                                                                                                                                                                                                                                                      |  |                               | 8,973 
|Stock-based compensation                                                                                                                                                                                                                                                                    |  |                               |      
|Interest on notes receivable from related parties                                                                                                                                                                                                                                           |  |                               | (8    
|Provision for doubtful accounts                                                                                                                                                                                                                                                             |  |                               | 706   
|Provision for inventory write down and reserve                                                                                                                                                                                                                                              |  |                               | 316   
|Deferred income taxes                                                                                                                                                                                                                                                                       |  |                               | (174  
|Changes in operating assets and liabilities:                                                                                                                                                                                                                                                |  |                               |       
|Accounts receivable                                                                                                                                                                                                                                                                         |  |                               | 525   
|Auction consignment advances                                                                                                                                                                                                                                                                |  |                               | 1,146 
|Inventories                                                                                                                                                                                                                                                                                 |  |                               | 205   
|Prepaid expenses and other assets                                                                                                                                                                                                                                                           |  |                               | (151  
|Income tax payable and refundable                                                                                                                                                                                                                                                           |  |                               | 226   
|Notes receivable                                                                                                                                                                                                                                                                            |  |                               | 233   
|Other assets                                                                                                                                                                                                                                                                                |  |                               | (73   
|Accounts payable and accrued liabilities                                                                                                                                                                                                                                                    |  |                               | (1,438
|Deferred revenue                                                                                                                                                                                                                                                                            |  |                               | (71   
|Deferred rent                                                                                                                                                                                                                                                                               |  |                               | 98    
|                                                                                                                                                                                                                                                                                            |  |                               |       
|Net cash provided by operating activities                                                                                                                                                                                                                                                   |  |                               | 1,791 
|INVESTING ACTIVITIES:                                                                                                                                                                                                                                                                       |  |                               |       
|Capital expenditures                                                                                                                                                                                                                                                                        |  |                               | (118  
|Collections on notes receivable                                                                                                                                                                                                                                                             |  |                               | 3     
|Net advances on notes receivable from an officer                                                                                                                                                                                                                                            |  |                               |      
|Advances for pending acquisition                                                                                                                                                                                                                                                            |  |                               |      
|                                                                                                                                                                                                                                                                                            |  |                               |       
|Net cash used in investing activities                                                                                                                                                                                                                                                       |  |                               | (115  
|FINANCING ACTIVITIES:                                                                                                                                                                                                                                                                       |  |                               |       
|Proceeds from employee stock purchase plan                                                                                                                                                                                                                                                  |  |                               | 8     
|Proceeds from exercise of stock options                                                                                                                                                                                                                                                     |  |                               | 2     
|                                                                                                                                                                                                                                                                                            |  |                               |       
|Net cash provided by financing activities                                                                                                                                                                                                                                                   |  |                               | 10    
|Net increase in cash and cash equivalents                                                                                                                                                                                                                                                   |  |                               | 1,686 
|Cash and cash equivalents at beginning of period                                                                                                                                                                                                                                            |  |                               | 4,947 
|                                                                                                                                                                                                                                                                                            |  |                               |       
|Cash and cash equivalents at end of period                                                                                                                                                                                                                                                  |  |                               | 6,633 
|                                                                                                                                                                                                                                                                                            |  |                               |       
|SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:                                                                                                                                                                                                                                          |  |                               |       
|Interest paid                                                                                                                                                                                                                                                                               |  | $                             |      
|                                                                                                                                                                                                                                                                                            |  |                               |       
|Income taxes paid                                                                                                                                                                                                                                                                           |  | $                             | 326   
|                                                                                                                                                                                                                                                                                            |  |                               |       
|SUPPLEMENTAL DISCLOSURE OF NON-CASH INFORMATION:                                                                                                                                                                                                                                           
|During the six months ended December 31, 2002, an officer of the Company transferred to the Company 13,207
shares of the Companys common stock owned by him, with a fair value of $386,000 in full satisfaction of the then outstanding balance on a note receivable due from the officer.



See
accompanying notes to condensed consolidated financial statements



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COLLECTORS UNIVERSE, INC. AND SUBSIDIARIES



NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)



|1. |  | SIGNIFICANT ACCOUNTING POLICIES
|-- |  | -------------------------------



Principles of Consolidation



The accompanying interim condensed consolidated financial statements include the accounts of Collectors Universe, Inc. and
its subsidiaries (the Company). All intercompany transactions and accounts have been eliminated.



Unaudited Interim Financial Information



The accompanying interim condensed consolidated financial statements have been prepared by the Company pursuant to the
rules and regulations of the Securities and Exchange Commission (the SEC) for interim financial reporting. These interim condensed consolidated financial statements are unaudited and, in the opinion of management, include all adjustments
(consisting of normal recurring adjustments and accruals) necessary to present fairly the consolidated balance sheets, consolidated operating results, and consolidated cash flows for the periods presented in accordance with accounting principles
generally accepted in the United States of America (GAAP). Operating results for the three and six-months ended December 31, 2002 are not necessarily indicative of the results that may be expected for the year ending June 30, 2003 or for
any other interim period during such year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted in accordance with the rules and regulations of the SEC. These
interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Companys Annual Report on Form 10-K for the fiscal year ended June 30,
2002. Certain prior period amounts have been reclassified to conform to the current period presentation.



Revenue Recognition



Net revenues include fees generated from the grading and authentication of sportscards, coins, autographs and stamps; the
sales prices of owned collectibles sold in our auctions and directly to collectors; commissions earned on sales of consigned collectibles at our auctions; and revenue from the publication of collectibles magazines, net of discounts and allowances,
product returns and commissions paid to consignors on sales of their collectibles.



We record revenue from the sale of collectibles at our auctions at the time the collectible is delivered in-person, or
otherwise shipped based on agreement with the successful bidder. Shipment or delivery generally takes place after payment is received from the successful bidder, which can be as long as 60 days after completion of the auction. However, for certain
repeat bidders, we deliver in-person or ship the collectibles at the close of an auction and allow them to pay up to 60 days following the auction. Such sales are also recorded at the time of delivery or shipment. We also offer extended payment
terms to certain collectors or dealers. For collectibles that we own and sell at auction, we record the successful bidder amount, or hammer, as the sale of merchandise and record the buyers fee as commission earned and the cost of
the merchandise sold as cost of revenues. For collectibles that are consigned to us for auction, we record, as commissions earned, the amounts of the buyers and sellers fees. Depending upon the type of collectibles auction, we charge
successful bidders commissions ranging from 10% to 15% and generally charge consignors sales commissions that range from 5% to 15%. On some large or important consignments, we may negotiate a reduced consignor commission or even pay a fee to the
consignor.



Grading revenues are
recognized when the graded item is returned to the customer. Grading fees have generally been prepaid, although we have offered open account privileges to numerous larger dealers. Advance payments received for grading services are deferred until the
service is performed and the item is shipped. For dealers who have open account status, we record revenue at the time of shipment.



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Use of
Estimates



The preparation
of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and
expenses during the reporting periods. Actual results could differ from those estimates, and such differences may be material to the consolidated financial statements. See Managements Discussion and Analysis of Financial Condition and
Results of OperationsCritical Accounting Policies and Estimates in Item 2 of Part I of this Report.



Recent Accounting Pronouncements



In July 2001, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards SFAS No.
141, Business Combinations, and SFAS No. 142, Goodwill and Other Intangible Assets. SFAS No. 141 requires the use of the purchase method of accounting and prohibits the use of the pooling-of-interests method of accounting for business
combinations initiated after June 30, 2001. SFAS No. 141 also requires the Company to recognize acquired intangible assets, apart from goodwill, if the acquired intangible assets meet certain criteria. SFAS No. 141 applies to all business
combinations initiated after June 30, 2001 and for purchase business combinations completed on or after July 2001.



SFAS No. 142, which the Company adopted on July 1, 2002 (the first day of its 2003 fiscal year), requires, among other
things, that companies no longer amortize goodwill, but instead test goodwill for impairment at least annually. In addition, SFAS No. 142 requires that companies identify reporting units for the purposes of assessing potential future impairments of
goodwill, reassess the useful lives of other existing recognized intangible assets, and cease amortization of intangible assets that have indefinite useful lives. An intangible asset with an indefinite useful life is required to be tested for
impairment at least annually in accordance with the guidance in SFAS No. 142. The effect of the adoption of SFAS No. 142 on the condensed consolidated financial statements is shown in Note 4.



In October 2001, the FASB issued SFAS No. 144,
Accounting for the Impairment or Disposal of Long-Lived assets.SFAS No. 144 addresses significant issues relating to the implementation of SFAS No. 121, Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be
Disposed Of,and develops a single accounting model, based on the framework established by SFAS No. 121, for long-lived assets to be disposed of by sale, whether previously held and used or newly acquired. SFAS No. 144 was adopted by the Company
on July 1, 2002. The adoption of SFAS No. 144 did not have a material impact on the Companys financial position or results of operations.



In June 2002, the FASB issued SFAS No. 146, Accounting for Costs Associated with Exit or Disposal Activities. SFAS
No. 146 addresses significant issues regarding the recognition, measurement, and reporting of costs associated with exit and disposal activities, including restructuring activities. SFAS No. 146 also addresses recognition of certain costs related to
terminating a contract that is not a capital lease, costs to consolidate facilities or relocate employees, and termination benefits provided to employees that are involuntarily terminated under the terms of a one-time benefit arrangement that is not
an ongoing benefit arrangement or an individual deferred-compensation contract. SFAS No. 146 is effective for exit or disposal activities that are initiated after December 31, 2002. Management believes that the adoption of SFAS No. 146 will not have
a material impact on the Companys consolidated financial statements.



In November 2002, the FASB issued FASB Interpretation (FIN) No. 45, Guarantors Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees and Indebtedness of
Others, an interpretation of FASB Statements No. 5, 57 and 107, and rescission of FASB Interpretation No. 34, Disclosure of Indirect Guarantees of Indebtedness of Others. FIN 45 elaborates on the disclosures to be made by the guarantor in its
interim and annual financial statements about its obligations under certain guarantees that it has issued. It also clarifies that a guarantor is required to recognize, at the inception of a guarantee, a liability for the fair value of the obligation
undertaken in issuing the guarantee. The initial recognition and measurement provisions of this interpretation are applicable on a prospective basis to guarantees issued or modified after December 31, 2002; while, the



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provisions of the disclosure requirements are effective for financial statements of interim or annual periods ending after December 15, 2002.
The Company believes the adoption of such interpretation will not have an impact on its results of operations or financial position.



In January 2003, the FASB issued FIN No. 46, Consolidation of Variable Interest Entities, an interpretation of
Accounting Research Bulletin (ARB) No. 51. FIN No. 46 requires that variable interest entities be consolidated by a company if that company is subject to a majority of the risk of loss from the variable interest entitys
activities or is entitled to receive a majority of the entitys residual returns or both. FIN No. 46 also requires disclosures about variable interest entities that companies are not required to consolidate but in which a company has a
significant variable interest. The consolidation requirements of FIN No. 46 will apply immediately to variable interest entities created after January 31, 2003. The consolidation requirements will apply to entities established prior to January 31,
2003 in the first year or interim period beginning after June 15, 2003. The disclosure requirements will apply in all financial statements issued after January 31, 2003. Management believes the adoption of such interpretation will not have an impact
on its results of operations or financial position.



|2. |  | INVENTORIES
|-- |  | -----------



Inventories consist of the following:



|                            |  | (in thousands)    |      
|--------------------------- |  | ----------------- | -----
|                            |  | December 31, 2002 |      
|Coins and currency          |  | $                 | 6,389
|Sportscards and memorabilia |  |                   | 1,465
|Records                     |  |                   | 3    
|Other collectibles          |  |                   | 263  
|                            |  |                   |      
|                            |  |                   | 8,120
|Less inventory reserve      |  |                   | (475 
|                            |  |                   |      
|Inventories, net            |  | $                 | 7,645
|                            |  |                   |      



|3. |  | PROPERTY AND EQUIPMENT
|-- |  | ----------------------



Property and equipment consist of the following:



|                                               |  | (in thousands)    |       
|---------------------------------------------- |  | ----------------- | ------
|                                               |  | December 31, 2002 |       
|Grading reference sets                         |  | $                 | 15    
|Computer hardware and equipment                |  |                   | 1,193 
|Computer software                              |  |                   | 866   
|Equipment                                      |  |                   | 1,256 
|Furniture and office equipment                 |  |                   | 717   
|Leasehold improvements                         |  |                   | 455   
|                                               |  |                   |       
|                                               |  |                   | 4,502 
|Less accumulated depreciation and amortization |  |                   | (3,014
|                                               |  |                   |       
|Property and equipment, net                    |  | $                 | 1,488 
|                                               |  |                   |       



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|4. |  | GOODWILL AND INTANGIBLE ASSETS
|-- |  | ------------------------------



As discussed in Note 1, the Company adopted the provisions of SFAS No. 142 on July 1, 2002, the beginning of its fiscal
2003. SFAS No. 142 required the Company, in the year of its adoption, to perform a transitional goodwill impairment test to be measured as of the beginning of the fiscal year. As required by SFAS No. 142, the test was conducted at a reporting
unit level and involved a comparison of each reporting units fair value to its carrying value. The Company has determined that its reporting units are sub-units of its two reportable segments. The measurement of value for each reporting
unit was based on a weighting of a combination of valuation approaches, including discounted cash flows and multiples of sales and earnings before interest, taxes, depreciation and amortization (EBITDA).



The Company completed the initial impairment
test in the quarter ended September 30, 2002 and concluded that certain of its goodwill was impaired, resulting in a non-cash after-tax charge of $8,973,000 or $1.45 per share. The charge was recorded as a cumulative effect of an accounting change
in the accompanying condensed consolidated statement of operations for the six months ended December 31, 2002.



The following is a summary of the impairment charge by business segment, net of a $4,511,000 tax benefit (in thousands):



|Business Segment           |  | Reporting Unit             |  | Charge
|-------------------------- |  | -------------------------- |  | ------
|Collectibles sales         |  | Bowers & Merena            |  | $     
|                           |  | Lyn Knight                 |  |       
|                           |  | Odyssey                    |  |       
|                           |  | Superior Sports Auctions   |  |       
|Grading and authentication |  | Professional Stamp Experts |  |       
|                           |  |                            |  |       
|                           |  |                            |  | $     
|                           |  |                            |  |       



Market and economic conditions have resulted in impairment to the goodwill allocated to these reporting units.



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The following table sets forth the reconciliation of net loss and net loss per share as adjusted for the non-amortization provisions of SFAS No. 142:



|                                         |  | (in thousands except per share data) |       |   | (in thousands except per share data) |  
|---------------------------------------- |  | ------------------------------------ | ----- | - | ------------------------------------ | -
|                                         |  | Three Months Ended December 31,      |       |   | Six Months Ended December 31,        |  
|                                         |  | 2002                                 |       |   | 2001                                 |  
|Reported net loss                        |  | $                                    | (449  | ) |                                      | $
|Add: goodwill amortization, net of taxes |  |                                      |      |   |                                      |  
|                                         |  |                                      |       |   |                                      |  
|Adjusted net loss                        |  | $                                    | (449  | ) |                                      | $
|                                         |  |                                      |       |   |                                      |  
|NET LOSS PER SHARE  BASIC               |  |                                      |       |   |                                      |  
|Reported net loss                        |  | $                                    | (0.07 | ) |                                      | $
|Goodwill amortization, net of taxes      |  |                                      |      |   |                                      |  
|                                         |  |                                      |       |   |                                      |  
|Adjusted net loss                        |  | $                                    | (0.07 | ) |                                      | $
|                                         |  |                                      |       |   |                                      |  
|NET LOSS PER SHARE  DILUTED             |  |                                      |       |   |                                      |  
|Reported net loss                        |  | $                                    | (0.07 | ) |                                      | $
|Goodwill amortization, net of taxes      |  |                                      |      |   |                                      |  
|                                         |  |                                      |       |   |                                      |  
|Adjusted net loss                        |  | $                                    | (0.07 | ) |                                      | $
|                                         |  |                                      |       |   |                                      |  



|Intangible assets consist of the following:                                     |  | (in thousands)    |     
|------------------------------------------------------------------------------- |  | ----------------- | ----
|                                                                                |  | December 31, 2002 |     
|Intangible assets subject toamortization, comprised of covenants
not-to-compete |  | $                 | 240 
|Less accumulated amortization                                                   |  |                   | (185
|                                                                                |  |                   |     
|                                                                                |  | $                 | 55  
|                                                                                |  |                   |     



Changes in the carrying amounts of goodwill for the six months ended December 31, 2002 were as follows (in thousands):



|                                          |  | Collectible Sales |         |   | Grading and Authentication |   |     | Total | 
|----------------------------------------- |  | ----------------- | ------- | - | -------------------------- | - | --- | ----- | 
|Balance at July 1, 2002                   |  | $                 | 14,872  |   |                            | $ | 89  |       | 
|Cumulative effect of change in accounting |  |                   | (13,401 | ) |                            |   | (83 | )     | 
|                                          |  |                   |         |   |                            |   |     |       | 
|Balance at December 31, 2002              |  | $                 | 1,471   |   |                            | $ | 6   |       | 
|                                          |  |                   |         |   |                            |   |     |       | 



Amortization expense related to the covenants not-to-compete amounted to $19,000 and $38,000 the three and six months ended December 31, 2002, respectively. Estimated amortization expense for each of the fiscal years ended June 30 is
presented below (in thousands):



|     |  | Year Ended June 30,
|---- |  | -------------------
|2003 |  | $                  
|2004 |  |                    



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|5. |  | INCOME TAXES
|-- |  | ------------



The income tax benefit recorded in the six months ended December 31, 2002 included a net tax benefit of $391,000 for
California Enterprise Zone Hiring Tax Credits, in addition to the tax benefit arising from the pre-tax loss incurred in the year to date period that was calculated based on our expected federal and state effective income tax rate of 39.8% for fiscal
year 2003. The California Enterprise Zone Hiring Tax Credits resulted from governmental approvals obtained during the quarter ended December 31, 2002 covering eligibility periods from 1999 to 2002.



|6. |  | NET LOSS PER SHARE
|-- |  | ------------------



Net loss per share is determined in accordance with SFAS No. 128, Earnings Per Share. Net loss per share for the
three and six months ended December 31, 2002 and 2001, respectively, are computed as follows:



|                                                                                         |  | (in thousands except per share data) |       |   | (in thousands except per share data) |  
|---------------------------------------------------------------------------------------- |  | ------------------------------------ | ----- | - | ------------------------------------ | -
|                                                                                         |  | Three Months Ended December 31,      |       |   | Six Months Ended December 31,        |  
|                                                                                         |  | 2002                                 |       |   | 2001                                 |  
|Net loss before cumulative effect of accounting change applicable to common
stockholders |  | $                                    | (449  | ) |                                      | $
|Cumulative effect of accounting change                                                   |  |                                      |      |   |                                      |  
|                                                                                         |  |                                      |       |   |                                      |  
|Net loss                                                                                 |  | $                                    | (449  | ) |                                      | $
|                                                                                         |  |                                      |       |   |                                      |  
|NET LOSS PER SHARE  BASIC                                                               |  |                                      |       |   |                                      |  
|Before cumulative effect of accounting change                                            |  | $                                    | (0.07 | ) |                                      | $
|Cumulative effect of accounting change                                                   |  |                                      |      |   |                                      |  
|                                                                                         |  |                                      |       |   |                                      |  
|Total                                                                                    |  | $                                    | (0.07 | ) |                                      | $
|                                                                                         |  |                                      |       |   |                                      |  
|NET LOSS PER SHARE  DILUTED                                                             |  |                                      |       |   |                                      |  
|Before cumulative effect of accounting change                                            |  | $                                    | (0.07 | ) |                                      | $
|Cumulative effect of accounting change                                                   |  |                                      |      |   |                                      |  
|                                                                                         |  |                                      |       |   |                                      |  
|Total                                                                                    |  | $                                    | (0.07 | ) |                                      | $
|                                                                                         |  |                                      |       |   |                                      |  
|WEIGHTED AVERAGE SHARES OUTSTANDING                                                      |  |                                      |       |   |                                      |  
|Basic                                                                                    |  |                                      | 6,129 |   |                                      |  
|Diluted                                                                                  |  |                                      | 6,129 |   |                                      |  



The
dilutive effect of stock options for 90,041 and 92,009 shares for the three and six months ended December 31, 2002, and 186,000 and 149,000 for the three and six month periods ended December 31, 2001, respectively, are excluded from the diluted net
loss per share, as the effect is antidilutive.



|7. |  | BUSINESS SEGMENTS
|-- |  | -----------------



Operating segments are defined as components of an enterprise about which separate financial information is available that
is evaluated regularly by the Companys chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. The Companys chief decision-maker is its Chief Executive Officer. The
operating segments of the Company are organized based on the services it offers. Similar operating segments have been aggregated to reportable operating segments based on having similar products or services, types of customers, and other criteria
under SFAS No. 131, Disclosures about Segments of an Enterprise and Related Information.



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We operate principally in two segments: (1) sales of collectibles through auctions and direct sales; and (2) authentication and grading of collectibles. We allocate operating expenses to each business segment based upon activity
levels. We do not allocate specific assets to these service segments. All of our revenues and identifiable assets are located in the United States. No individual customer accounted for 10% or more of net revenues for the three and six months ended
December 31, 2002 and 2001, respectively.



|                               |  | (in thousands)                       |      
|------------------------------ |  | ------------------------------------ | -----
|                               |  | Three Months Ended December 31, 2002 |      
|                               |  | Collectibles Sales                   |      
|Net revenues                   |  | $                                    | 6,840
|                               |  |                                      |      
|Operating income (loss)        |  |                                      | (923 
|Unallocated operating expenses |  |                                      |      
|                               |  |                                      |      
|Consolidated operating loss    |  |                                      |      
|                               |  |                                      |      



|                               |  | (in thousands)                       |      
|------------------------------ |  | ------------------------------------ | -----
|                               |  | Three Months Ended December 31, 2001 |      
|                               |  | Collectibles Sales                   |      
|Net revenues                   |  | $                                    | 6,552
|                               |  |                                      |      
|Operating income (loss)        |  |                                      | (341 
|Unallocated operating expenses |  |                                      |      
|                               |  |                                      |      
|Consolidated operating loss    |  |                                      |      
|                               |  |                                      |      



|                               |  | (in thousands)                     |       
|------------------------------ |  | ---------------------------------- | ------
|                               |  | Six Months Ended December 31, 2002 |       
|                               |  | Collectibles Sales                 |       
|Net revenues                   |  | $                                  | 13,920
|                               |  |                                    |       
|Operating income (loss)        |  |                                    | (945  
|Unallocated operating expenses |  |                                    |       
|                               |  |                                    |       
|Consolidated operating loss    |  |                                    |       
|                               |  |                                    |       



|                               |  | (in thousands)                    
|------------------------------ |  | ----------------------------------
|                               |  | Six Months Ended December 31, 2001
|                               |  | Collectibles Sales                
|Net revenues                   |  | $                                 
|                               |  |                                   
|Operating income (loss)        |  | $                                 
|Unallocated operating expenses |  |                                   
|                               |  |                                   
|Consolidated operating loss    |  |                                   
|                               |  |                                   



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ITEM
2.    
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF
OPERATIONS



Forward-Looking Statements



The discussion in this Item 2 and in Item 3 of this Quarterly
Report on Form 10-Q includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. That Act provides a safe harbor for forward-looking statements to encourage companies to
provide prospective information about their financial performance so long as they provide meaningful, cautionary statements identifying important factors that could cause actual results to differ from projected results. Other than statements of
historical fact, all statements in this Report and, in particular, any projections of or statements as to our expectations or beliefs concerning our future financial performance or financial position or as to future trends in our business or in our
markets, are forward-looking statements. Forward-looking statements reflect our current expectations about trends in our business and our future financial performance. Our actual results in future periods may differ significantly from those
expectations. The sections below entitled Overview  Factors Affecting Revenues and Margins and Additional Factors That May Affect Future Operating Results describe some, but not all, of the factors that could cause
these differences, and readers of this Report are urged to read those sections of this Report in their entirety and the Companys Annual Report on Form 10-K for its fiscal year ended June 30, 2002, which contains additional information
regarding risks and uncertainties that could affect our future financial performance.



Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this Report, which speak only as of the date of
this Report, or to make predictions about future performance based solely on historical financial performance. We also disclaim any obligation to update forward-looking statements contained in this Report or in our Annual Report on Form 10-K
referred to above.



Our Business.



Collectors Universe provides grading and authentication
services for sportscards, rare coins, vintage stamps and authentication services for autographs and sports memorabilia. We also sell rare coins and rare currencies, sportscards, sports and entertainment memorabilia and other collectibles through
auctions and direct sales channels. Most of our collectibles auctions are conducted utilizing a multi-venue format that may include in-person, Internet, mail-in, and telephone bidding options. This multi-venue format allows bidders to
enter auction bids at any time and from any place in the manner that is most convenient for them. We also sell rare coins, sportscards, sports memorabilia and autographs through shows, catalogs, Internet and direct sales.



Critical Accounting Policies and Estimates



General.    The Companys
consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). In determining the carrying value of some of our assets and liabilities, principally
accounts receivable, inventories, warranty obligations, deferred income taxes and goodwill, we must make judgments, estimates and assumptions (which we will refer to in this discussion, collectively as estimates) regarding future events
and circumstances that could affect the value of those assets and liabilities, such as future economic conditions that will affect our ability to collect our accounts receivable or sell our inventories in future periods. Those estimates are based on
current information available to us at the time they are made. Many of those events and circumstances, however, are outside of our control and if changes in those events or circumstances occur thereafter, GAAP may require us to adjust our earlier
estimates that are affected by those changes. Any downward adjustments in value caused by those changes in estimates are commonly referred to as write-downs of the assets involved.



Additionally, decisions of when adjustments of this nature
should be made also require subjective judgments involving an assessment or prediction about the effects and duration of events or changes in circumstances. For example, it is not easy to predict whether events, such as occurred on September 11,
2001 or increases in interest rates or economic slowdowns, will have short or longer term consequences for a particular



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business and it is not uncommon for it to take some time, after the occurrence of an event or the onset of changes in economic circumstances,
for the full effects of such events or changes to be recognized.



It is our practice in certain cases to establish reserves or allowances to record any downward adjustments or write-downs in the carrying value of assets such as these. Examples include reserves or allowances established
for uncollectible accounts receivable (sometimes referred to as bad debt reserves) and reserves for slow moving or obsolete inventory. Write-downs are charged against these reserves or allowances and those reserves are replenished
following such write downs, or increased to take account of changed conditions or events, by charges to income or increases in expense in our statement of operations in the periods when the effects of those changed conditions or events become known.
With respect to certain other assets, such as goodwill, we write down their carrying value directly in the event of an impairment by means of a charge to income. As a result, our estimates concerning future events and changes in those events or
circumstances can and will affect not only the amounts at which we record these assets on our balance sheet, but also our results of operations.



Under GAAP, we also must make estimates regarding the periods during which, and also regarding the amounts at which, sales are recorded.
Those estimates will depend on such factors as the circumstances under which customers may be entitled to return the products or reject or adjust the payment for the services provided to them. Additionally, in those cases when we grant our customers
contractual rights to return products sold to them, we establish a reserve or allowance for product returns by means of a reduction in the amount at which the sales are recorded, based primarily on the nature, extensiveness and duration of those
rights and our historical product return experience.



In making our estimates we follow GAAP and accounting practices applicable to our business that we believe will enable us to make fair and consistent estimates of the realizable or recoverable amounts of those assets and establish
adequate reserves or allowances for potential write-downs in the value of those assets. Set forth below is a summary of the accounting policies that we believe are material to an understanding of our financial condition and results of operations.



Revenue Recognition and the Allowance for
Returns.    We record, as deferred revenue, all prepaid grading submissions until the items submitted for grading have been graded and returned to the customer. Upon shipment back to the customer, we record the revenue from
grading and deduct this amount from deferred revenue. For dealers who have open account status, we also record revenue at the time of shipment.



We record revenue from the sale of collectibles at our auctions at the time the collectible is either shipped or delivered in-person to
the successful bidder, based on the bidders preference. Shipment or delivery generally takes place after payment is received from the successful bidder, which can be as long as 60 days after completion of the auction. As a result, revenues
from sales made at auctions conducted in the second half of a fiscal quarter usually will not be recorded until the subsequent quarter. However, for certain repeat bidders we ship or deliver in-person the collectibles at the close of an auction and
allow them to pay up to 60 days following the auction. Those sales also are recorded at the time of delivery or shipment. We also offer extended payment terms to certain collectors or dealers. For collectibles that we own and sell at auction, we
record the successful bidder amount, or hammer, as the sale of the merchandise and record the buyers fee as commission earned. We also record the cost of the merchandise sold as cost of revenues. For collectibles that are consigned
to us for auction, we record, as commissions earned, the amounts of the buyers and sellers fees. Depending upon the type of collectibles auction, we charge successful bidders a 10% to 15% commission and generally charge consignors a 5%
to 15% selling commission. On some large or important consignments, we may negotiate a reduced consignor commission or even pay a fee to the consignor.



We sometimes provide our customers with limited rights to return collectibles sold to them. We establish an allowance for estimated
returns, if necessary, which reduces the amounts of our reported revenues, based on historical returns experience.



Accounts Receivable and the Allowance for Doubtful Accounts.    In the normal course of business, we extend
payment terms to more creditworthy collectibles dealers. We regularly review their accounts and estimate the amount of and establish an allowance for uncollectible amounts in each reporting period. The amount of that allowance is based on several
factors, including the age of unpaid amounts, a review of significant past due



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accounts, economic conditions that may affect the ability of dealers to keep their accounts current, and the value of any collateral securing
the customers payment obligations. Estimates of uncollectible amounts are reviewed each period and, based on that review, are revised to reflect changed circumstances or conditions in the period they become known. For example, if the financial
condition of any dealers or economic conditions were to deteriorate, adversely affecting the ability of the dealers to make payments on their account, increases in the allowance may be required. Since the allowance is created by recording a charge
against income that is reflected in selling, general and administrative expenses, an increase in the allowance will cause a decline in our operating results in the period when the increase is recorded.



Inventory Valuation
Reserve.    Inventories are valued at the lower of cost or market and are reduced by an inventory valuation allowance to provide for declines in the value of our inventory, which consists of collectible coins, sportscards and
other collectibles. The amount of the allowance is determined on the basis of historical experience, estimates concerning future economic conditions and estimates of future sales. If there is an economic downturn or a decline in sales, causing
inventories of some collectibles to accumulate, it may become necessary to increase the allowance. Increases in this allowance will cause a decline in operating results as such increases are effectuated by charges against income.



Long-Lived Assets and
Goodwill.    Long-lived assets such as property and equipment, and goodwill and intangible assets are reviewed for impairment when events or circumstances indicate that the carrying value may not be recoverable. Prior to the
current fiscal year, in accordance with GAAP, we used estimated undiscounted future cash flows to determine if an asset was impaired. If an asset was determined to be impaired its carrying value would have been reduced to fair value and any
resulting impairment would have been recorded as a charge against income in the period in which the impairment determination was made. Effective as of the July 1, 2002, which was the beginning of our current fiscal year, we adopted SFAS No. 142.
SFAS No. 142 required us to assess our goodwill for impairment based on new standards that require goodwill to be tested for impairment annually, or more frequently if circumstances indicate potential impairment, by comparing the fair value of the
asset to its carrying amount. During the quarter ended September 30, 2002, we completed a two step transitional impairment test required by SFAS No. 142. That test required us, first, to assess the fair value of the assets and, second, to compare
the implied fair value of the recorded goodwill of the assets, determined in a manner similar to a purchase price allocation in a business combination, to the carrying amount of the goodwill. Based on this analysis, in the first quarter of the
current fiscal year, the Company determined that its goodwill, which totaled $14,961,000 as of June 30, 2002, had been impaired by $8,973,000, net of taxes of $4,511,000. As a result, in accordance with SFAS No. 142, the Company reported, as a
cumulative effect of a change in accounting principle, a non-cash goodwill impairment charge in that amount in its statement of operations for the quarter ended September 30, 2002 and, therefore, is also included in its statement of operations for
the six months ended December 31, 2002. This charge, which reduces reported earnings and stockholders equity, does not affect the Companys tangible net worth and is not expected to adversely affect its business operations or cash flows.
See Note 4 to our Condensed Consolidated Financial Statements included earlier in this Report.



Overview of Factors that Affect Our Operating Results and Liquidity



Factors Affecting Revenues and Margins



Revenue Recognition Policies.    We record, as deferred revenue, all prepaid grading submissions until the
collectibles submitted for grading have been graded and returned to the customer. Upon shipment back to the customer, we record the revenue from grading and deduct this amount from deferred revenue. For dealers who have open account status, we
record revenue at the time of shipment.



We
record revenue from the sale of collectibles at our auctions at the time the collectible is either shipped or delivered in-person to the successful bidder, based on the bidders preference. Shipment or delivery generally takes place after
payment is received from the successful bidder, which can be as long as 60 days after completion of the auction. As a result, revenues from sales made at auctions conducted in the second half of a fiscal quarter usually will not be recorded until
the subsequent quarter. However, for certain repeat bidders we ship or deliver in-person the collectibles at the close of an auction and allow them to pay up to 60 days following the auction. Those sales are also recorded at the time of delivery or
shipment. We also offer extended payment terms to certain collectors or dealers.



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For
collectibles that we own and sell at auction, we record the successful bidder amount, or hammer, as the sale of the merchandise and record the buyers fee as commission earned. We also record the cost of the merchandise sold as cost
of revenues. For collectibles that are consigned to us for auction, we record, as commissions earned, the amounts of the buyers and sellers fees. Depending upon the type of collectibles auction, we charge successful bidders a 10% to 15%
commission and generally charge consignors a 5% to 15% selling commission. On some large or important consignments, we may negotiate a reduced consignor commission or even pay a fee to the consignor.



Our auctions are held periodically throughout the fiscal year.
The number and size of the auctions we conduct vary from quarter to quarter, depending largely on the volume, value and timing of the collectibles consignments that we are able to obtain for our auctions. For this reason, our auction revenue and, as
a result, also our cash flow, can vary, sometimes significantly, from quarter to quarter. These circumstances, coupled with our revenue recognition policy under which in most instances we do not recognize revenue from auction sales until 60 days
after completion of an auction, also make it difficult to forecast, on a quarterly basis, revenue that will be attributable to our auction business.



Gross Profit Margins.    The gross profit margins on grading submissions are affected by the mix of submissions
between vintage or classic coins and sportscards, on the one hand, and modern coins and sportscards, on the other hand. Generally, our prices for grading services vary depending on the turn-around time requested by submitting
dealers and collectors, who are willing to pay more for faster turn-around of the coins and sportscards they submit for grading. As a general rule, dealers and collectors request faster turn-around for vintage or classic coins and sportscards than
they do for modern submissions.



The gross margin
on revenues for auction of consigned collectibles is significantly higher than the gross margin on sales of owned collectibles because we realize commissions on auction of consigned collectibles while incurring associated costs of 20% to 25%. By
contrast, upon the sale of owned collectibles, we record the costs of acquiring those collectibles, which are usually a significantly higher percentage of the selling price. As a result, the mix of auction sales, between consigned collectibles and
owned collectibles affects our gross margin on auction sales and the sale of owned collectibles can reduce our overall auction margins to a level that is significantly below that realized for authentication and grading services.



Consequently, our overall gross margin depends, not only upon
the mix of grading revenues and auction revenues, but also upon the mix of vintage and modern collectibles submitted for grading and authentication and the mix of consigned and owned collectibles sold at our auctions.



Impact of Economic Conditions on Financial Performance.



The Company generates substantially all of
its revenues from the collectibles market segment, which is affected by discretionary consumer spending. Unfavorable economic conditions have in the past, and could in the future, adversely affect the Companys operating results and financial
condition.



RESULTS OF OPERATIONS



Net Revenues



|             |  | Three Months Ended December 31, |            | Six Months Ended December 31,
|------------ |  | ------------------------------- | ---------- | -----------------------------
|             |  | 2002                            |            | 2001                         
|Net revenues |  | $                               | 11,312,000 |                              



Net
revenues include fees generated from the grading and authentication of sportscards, coins, autographs and stamps; the sales prices of owned collectibles sold in our auctions and directly to collectors; commissions earned on sales of consigned
collectibles at our auctions; and revenue from the publication of collectibles magazines. Net revenues are determined net of discounts and allowances, product returns, and commissions paid to consignors on sales of their collectibles.



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Net revenues
for the three and six months ended December 31, 2002 and 2001, increased by 7% to $11,312,000 and 20% to $23,905,000, respectively, as compared to the corresponding three and six-month periods of the prior year, due to increases in both our grading
and authentication and our collectibles sales business segments.



Grading and authentication revenue increased by 10% and 19% in the three and sixmonth periods ended December 31, 2002, and 2001, respectively, when compared to the same periods last year, primarily because of a continued
increase in coin grading submissions. Grading submissions for coins began to increase noticeably in the quarter ended June 30, 2002 and continued to do so throughout the three and six months ended December 31, 2002. Sportscard grading revenues for
the three and six months ended December 31, 2002 and 2001, respectively, declined significantly compared to the same period last year, indicating a continued degradation in the demand for sportscard grading. We believe the increase in coin grading
submissions was attributable to a number of factors, including our introduction of new marketing programs and improvements in consumer confidence and increases in the market values of coins, which tend to be countercyclical to the economy and the
stock market.



Auction and collectibles sales
revenues were higher by 4% and 21% for the three and six months ended December 31, 2002 and 2001, respectively, as compared to the same prior year periods, due primarily to an increase in demand for rare coins and currency. We believe the increased
demand may be the result of investors looking for investment alternatives to the stock market and the increases in market values of gold and silver that often occur during periods of economic uncertainty.



Gross Profit



|                    |  | Three Months Ended December 31, |           |   | Six Months Ended December 31, |  
|------------------- |  | ------------------------------- | --------- | - | ----------------------------- | -
|                    |  | 2002                            |           |   | 2001                          |  
|Gross profit        |  | $                               | 4,168,000 |   |                               | $
|Gross profit margin |  |                                 | 37        | % |                               |  



Gross
profit is calculated by subtracting the cost of revenues from net revenues. Cost of revenues consist of labor to grade and authenticate coins and sportscards, production costs, printing, credit cards fees, warranty expense and the cost of owned
collectibles sold in our auctions. Gross profit margin is gross profit stated as a percent of net revenues. Gross profit decreased by 4%, and gross margin also declined, in the quarter ended December 31, 2002 as a result of several factors,
including (i) a $316,000 charge to cost of sales for inventory write downs reflecting a decline in market values of certain collectibles; and (ii) a lower gross profit margin on sportscard grading due primarily to a change in the mix of sportcard
submissions to a greater proportion of modern sportscards.



For the six-month period ended December 31, 2002, gross profit increased 24% to $9,642,000 from $7,774,000 for the comparable year earlier period. Gross margin also increased from 39% to 40% from the same prior year period. The
increase in our gross margin for the first six months of the year occurred primarily as a result of a change in the mix of grading revenues due to a substantial increase in coin grading submissions and a reduction in sportcard grading submissions.



Selling, General and Administrative Expenses
(including allowance for doubtful accounts)



|                                                |  | Three Months Ended December 31, |           |   | Six Months Ended December 31, |  
|----------------------------------------------- |  | ------------------------------- | --------- | - | ----------------------------- | -
|                                                |  | 2002                            |           |   | 2001                          |  
|SG&A (including allowancefor doubtful accounts) |  | $                               | 5,675,000 |   |                               | $
|Percent of net revenues                         |  |                                 | 50        | % |                               |  



Selling,
general and administrative (including allowance for doubtful accounts) (SG&A) expenses include primarily advertising and sales promotional expenses, wages and payroll-related expenses, professional and consulting expenses, travel and
entertainment, facility-related expenses and security charges. SG&A expenses



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increased by 10.7% to $5,675,000 for the three-month period ended December 31, 2002 from $5,125,000 in the corresponding period in the prior
year, and by 3.6% to $10,696,000 in the six-month period ended December 31, 2002 from $10,329,000 for the six months ended December 31, 2001. SG&A as a percent of net revenues increased from 48% to 50% and decreased from 52% to 45% for the three
and six-month periods ended December 31, 2002, respectively, when compared to the same prior year periods. The increases in the amount of SG&A expense in the current fiscal year occurred as a result of (i) a $500,000 increase in bad debt
expense, relating to a single customer; (ii) severance compensation expenses; and (iii) a consulting fee for services in securing the governmental approvals needed to obtain California Enterprise Zone Hiring Tax Credits.



Amortization of Goodwill and Intangibles



|                                         |  | Three Months Ended December 31, |        |   | Six Months Ended December 31, |  
|---------------------------------------- |  | ------------------------------- | ------ | - | ----------------------------- | -
|                                         |  | 2002                            |        |   | 2001                          |  
|Amortization of goodwill and intangibles |  | $                               | 18,000 |   |                               | $
|Percent of net revenues                  |  |                                 | 0.2    | % |                               |  



We
adopted SFAS No. 142, Goodwill and Other Intangible Assets, effective as of July 1, 2002. In accordance with SFAS 142, we ceased amortizing goodwill recorded in past business combinations effective as of July 1, 2002. As a result, there is no
charge for goodwill amortization expense contained in the Companys statements of operations for the three and six months ended December 31, 2002; whereas the Companys statements of operations for the three and six months ended December
31, 2001, does contain charges for goodwill amortization expense. See Note 4 to the Companys Condensed Consolidated Financial Statements included earlier in this Report.



Interest Income, Net



|                        |  | Three Months Ended December 31, |         |   | Six Months Ended December 31, |  
|----------------------- |  | ------------------------------- | ------- | - | ----------------------------- | -
|                        |  | 2002                            |         |   | 2001                          |  
|Interest income, net    |  | $                               | 100,000 |   |                               | $
|Percent of net revenues |  |                                 | 0.9     | % |                               |  



Interest
income, net in the three and six month periods ended December 31, 2002 was higher than in the corresponding periods of the prior year, primarily because during the current fiscal year (i) our cash balances were higher; and (ii) our auction divisions
made a greater volume of interest bearing consignment advances. Our cash balances fluctuate because of the variability in the timing and size of our auctions, and accordingly it is anticipated that interest income will fluctuate on a
quarter-to-quarter basis (see Overview  Factors Affecting Revenues and Margins above in this Item 2).



Income Tax Benefit



|                   |  | Three Months Ended December 31, |          |   | Six Months Ended December 31, |  
|------------------ |  | ------------------------------- | -------- | - | ----------------------------- | -
|                   |  | 2002                            |          |   | 2001                          |  
|Income Tax Benefit |  | $                               | (967,000 | ) |                               | $



The
income tax benefit recorded in the six months ended December 31, 2002 included a net tax benefit of $391,000 for California Enterprise Zone Hiring Tax Credits, in addition to the tax benefit arising from the pre-tax loss incurred in the year-to-date
period that was calculated based on our expected federal and state effective income tax rate of 39.8% for fiscal year 2003. The California Enterprise Zone Hiring Tax Credits resulted from governmental approvals obtained during the quarter ended
December 31, 2002 covering eligibility periods from 1999 to 2002.



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Cumulative
Effect of Change in Accounting Principle



Effective as of the July 1, 2002, which was the beginning of our current fiscal year, we adopted SFAS No. 142. SFAS No. 142 requires us (as well as other companies) to assess goodwill for impairment annually, or more frequently if
circumstances indicate potential impairment. SFAS No. 142 requires that a determination be made of the fair value of the recorded goodwill of a companys assets, in a manner similar to a purchase price allocation in a business combination, and
that a goodwill impairment charge be recorded if the carrying amount of the goodwill is found to exceed the fair value of the recorded goodwill on the books of the company. Based on this analysis, we determined that our goodwill, which totaled
$14,961,000 as of June 30, 2002, had been impaired by $8,973,000, net of taxes of $4,511,000. As a result, in accordance with SFAS No. 142, we reported, as a cumulative effect of a change in accounting principle, a non-cash goodwill impairment
charge in that amount in the quarter ended September 30, 2002, and which is reflected in our statement of operations for the six months ended December 31, 2002 included in this Report. This charge, which reduced reported earnings for that six month
period and stockholders equity at December 31, 2002, did not affect our tangible net worth and is not expected to adversely affect our business operations or cash flows. See Note 4 to our Condensed Consolidated Financial Statements included
earlier in this Report.



LIQUIDITY AND CAPITAL RESOURCES



At December 31, 2002, we had cash and cash
equivalents of $6,633,000 compared to cash and cash equivalents of $4,947,000 at June 30, 2002. We generally experience period-to-period fluctuations in our cash and cash equivalents balances due largely to the variability in the timing and size of
our collectibles auctions. We generally pay consignors to our auctions on the 45thday following the close of an
auction. However, most of the payments due for those collectibles from the winning bidders are not received until 60 days after an auction is completed. As a result, we experience significant cash outflows within the first 45 days, and cash inflows
beginning 60 days, following completion of a large auction until this auction cycle resumes. Depending on the number of auctions held in any fiscal period, the relative size of those auctions in terms of the number and value of the items sold and
the timing of each auction, this auction cycle can cause significant fluctuations in our cash balances. As a result, we expect that our cash and cash equivalent balances will be subject to continuing period-to-period fluctuations in
subsequent reporting periods.



Historically, we
have relied on internally generated funds, rather than borrowings, as our primary source of funds to support operations. Our grading and authentication services provide us with a relatively steady source of cash because, in most instances, our
customers prepay for services at the time they submit their collectibles for authentication and grading. As discussed above, our auction activities experience significant fluctuations in cash flows depending upon each individual auction cycle and
size of the auctions. We do have a $1.5 million short-term unsecured credit facility with a commercial bank, which we have used primarily to fund (i) advances to consignors to our auctions in amounts that represent a portion of the prices expected
to be realized from sales of their collectibles at our auctions, and (ii) short-term working capital requirements. There were no borrowings outstanding under that credit line at December 31, 2002, nor at February 14, 2003.



Operating activities provided cash of $1,791,000 during the
six-month period ended December 31, 2002 as compared to providing net cash of $1,125,000 in the six-month period ended December 31, 2001. This increase in internally generated cash flow was due primarily to a lower net loss, before the cumulative
effect of accounting change, which was a non-cash charge, and a reduction in inventories and receivables.



Net cash used in investing activities was $115,000 for the six-month period ended December 31, 2002 and consisted of expenditures for
fixed assets, primarily software and equipment costs.



Financing activities provided net cash of $10,000 in the six-month period ended December 31, 2002, consisting of proceeds from sales under our Employee Stock Purchase Plan and the exercise of employee stock options.



We believe that our existing cash balances and internally
generated funds, together with periodic short-term borrowings under our $1.5 million credit line, will be sufficient to fund our cash requirements for at least the next twelve months. However, our cash requirements will depend on several factors,
including our ability to



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achieve and maintain operating profitability, the need to increase inventory of collectibles for auction, capital expenditures for our new
enterprise software system and various other factors. Depending on our profitability and working capital requirements, we may require additional financing from external sources in the future through equity or debt offerings, which may or may not be
available or may be dilutive to our stockholders. Our ability to obtain financing from external sources will depend upon our operating results, financial condition, future business prospects, our stock price performance and conditions then
prevailing in the relevant capital markets.



RECENT ACCOUNTING
PRONOUNCEMENTS



In July 2001, the FASB
issued SFAS No. 141, Business Combinations, and SFAS No. 142, Goodwill and Other Intangible Assets. SFAS No. 141 requires the use of the purchase method of accounting and prohibits the use of the pooling-of-interests method of
accounting for business combinations initiated after June 30, 2001. SFAS No. 141 also requires that the Company recognize acquired intangible assets, apart from goodwill, if the acquired intangible assets meet certain criteria. SFAS No. 141 applies
to all business combinations initiated after June 30, 2001 and for purchase business combinations completed on or after July 1, 2001 and for purchase business combinations completed on or after July 2001.



SFAS No. 142, which the Company adopted as of July 1, 2002
(the beginning of our current fiscal year), requires, among other things, that companies no longer amortize goodwill, but instead test goodwill for impairment at least annually. In addition, SFAS No. 142 requires that companies identify reporting
units for the purposes of assessing potential future impairments of goodwill, reassess the useful lives of other existing recognized intangible assets, and cease amortization of intangible assets with indefinite useful lives. An intangible asset
with an indefinite useful life will be tested for impairment at least annually in accordance with the guidance in SFAS No. 142. SFAS No. 142 requires the Company to complete a transitional goodwill impairment test by no later than January 2, 2003.
The Company elected to complete its goodwill impairment testing during the first quarter of the current fiscal year and, as described in Note 4 to the Condensed Consolidated Financial Statements included earlier in this Report, has determined that,
under the standards called for by SFAS No. 142, its goodwill was impaired, and in accordance with SFAS No. 142, has recorded as a cumulative effect of change in accounting principle a non-cash charge in the amount of $8,973,000, net of taxes of
$4,511,000, in the quarter ended September 30, 2002.



In October 2001, the FASB issued SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets.SFAS No. 144 addresses significant issues relating to the implementation of SFAS No. 121, Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of,and develops a single accounting model, based on the framework established by SFAS No. 121, for long-lived assets to be disposed of by sale, whether previously held and
used or newly acquired. SFAS No. 144 was adopted by the Company on July 1, 2002. The adoption of SFAS No. 144 did not have a material impact on the Companys financial position or results of operations.



In June 2002, the FASB issued SFAS No. 146, Accounting for
Costs Associated With Exit or Disposal Activities. SFAS No. 146 addresses significant issues regarding the recognition, measurement, and reporting of costs associated with exit and disposal activities, including restructuring activities. SFAS
No. 146 also addresses recognition of certain costs related to terminating a contract that is not a capital lease, costs to consolidate facilities or relocate employees, and termination benefits provided to employees that are involuntarily
terminated under the terms of a one-time benefit arrangement that is not an ongoing benefit arrangement or an individual deferred-compensation contract. SFAS No. 146 is effective for exit or disposal activities that are initiated after December 31,
2002. Management believes that the adoption of SFAS No. 146 will not have a material impact on the Companys consolidated financial statements.



In November 2002, the FASB issued FASB Interpretation (FIN) No. 45, Guarantors Accounting and Disclosure Requirements for
Guarantees, Including Indirect Guarantees and Indebtedness of Others, an interpretation of FASB Statements No. 5, 57 and 107, and rescission of FASB Interpretation No. 34, Disclosure of Indirect Guarantees of Indebtedness of Others. FIN 45
elaborates on the disclosures to be made by the guarantor in its interim and annual financial statements about its obligations under certain guarantees that it has issued. It also clarifies that a guarantor is required to recognize, at the inception
of a guarantee, a liability for the fair value of the obligation undertaken in issuing the guarantee. The initial recognition and measurement provisions of this



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interpretation are applicable on a prospective basis to guarantees issued or modified after December 31, 2002; while, the provisions of the
disclosure requirements are effective for financial statements of interim or annual periods ending after December 15, 2002. The Company believes the adoption of such interpretation will not have an impact on its results of operations or financial
position.



In January 2003, the FASB issued FIN
No. 46, Consolidation of Variable Interest Entities, an interpretation of Accounting Research Bulletin (ARB) No. 51. FIN No. 46 requires that variable interest entities be consolidated by a company if that company is subject to a
majority of the risk of loss from the variable interest entitys activities or is entitled to receive a majority of the entitys residual returns or both. FIN No. 46 also requires disclosures about variable interest entities that companies
are not required to consolidate but in which a company has a significant variable interest. The consolidation requirements of FIN No. 46 will apply immediately to variable interest entities created after January 31, 2003. The consolidation
requirements will apply to entities established prior to January 31, 2003 in the first year or interim period beginning after June 15, 2003. The disclosure requirements will apply in all financial statements issued after January 31, 2003. Management
believes the adoption of such interpretation will not have an impact on its results of operations or financial position.



ADDITIONAL FACTORS THAT MAY AFFECT FUTURE OPERATING RESULTS



There are a number of risks and uncertainties that could affect our future operating results and financial
condition. Those risks and uncertainties include those discussed in the Section of this Quarterly Report entitled Managements Discussion and Analysis of Financial Condition and Results of Operations and the factors described under
the caption Factors That Could Affect Our Future Performance contained in Item 1  DESCRIPTION OF BUSINESS, of our Annual Report on Form 10-K for the fiscal year ended June 30, 2002 filed with the Securities and
Exchange Commission, to which reference is hereby made for additional information regarding these risks, uncertainties and other factors. In particular, the factors described in our Annual Report that could adversely affect our future financial
performance include: the risk that the popularity of collectibles will decline and declines in the general economic conditions, either of which can result in reductions in purchases of collectibles and in grading submissions by collectors and
dealers; changes in the popularity of certain collectibles could cause revenues to fluctuate; frequency and fluctuations in the size of auctions, which are largely a function of our ability to obtain consignments of collectibles from dealers and
collectors, could cause revenues to fluctuate; competition for limited supplies of high-end collectibles for auctions among collectibles companies which could have the effect of reducing profit margins; lack of adequate investment returns on new
business opportunities; the possibility of having to write down the carrying value of owned collectibles inventories because of market value fluctuations or an inability to sell collectibles in a timely manner; the dependence of our operations on
certain key executives, the loss of any of which could adversely affect our business operations, including our ability to obtain consignments for our auctions, and therefore our operating results; increased competition from other collectibles
auction and grading companies; the risk that we will incur unanticipated liabilities under our authentication and grading warranties; and government regulation that could cause operating costs to increase.



ITEM 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK



Market risk represents the risk of loss that may impact the financial position, results of operations or cash flows of the Company due to
adverse changes in financial market prices, including interest rate risk, foreign currency exchange rate risk, commodity price risk and other relevant market rate or price risks.



Due to the cash balances that we maintain, we are exposed to risk of changes in short-term interest rates. At
June 30, 2002 and December 31, 2002, we had $4,947,000 and $6,633,000, respectively, in cash and cash equivalents. These cash balances are primarily invested in a highly liquid money market fund and interest earned is re-invested in the same fund,
which accounts for the interest income that we generate. Reductions in short-term interest rates could result in reductions in the amount of that income. However, the impact on our operating results of such changes is not expected to be material.



The Company has no activities that would expose
it to foreign currency exchange rate risk or commodity price risks.



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ITEM 4.    CONTROLS AND PROCEDURES



Within the past 90 days, we carried out an evaluation, under the supervision of the Companys Chief Executive Officer and Chief Financial Officer, of the effectiveness of the Companys
disclosure controls and procedures. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer have each concluded that those controls and procedures were effective in making known to them, on a timely basis, the material
information needed for the preparation of this Report on Form 10-Q. There were no significant changes in the Companys internal controls or in other factors that could significantly affect those internal controls since the date of their
evaluation nor did we find any significant deficiencies and material weaknesses that would have required corrective actions to be taken with respect to those controls.



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PART II
 OTHER INFORMATION



ITEM 5.    SUBMISSION OF MATTERS TO A VOTE OF THE SECURITY HOLDERS



Our Annual Meeting of Stockholders was held on December 5, 2002. At that meeting, stockholders voted (i) on the election of six directors
to serve for a term of one year (the Election of Directors), and (ii) an amendment to the Companys Certificate of Incorporation effectuating a one-for-four reverse stock split of the outstanding shares (the Reverse Stock
Split).



Election of
Directors.    The six candidates named below were the only candidates nominated for election and, therefore, the election was uncontested and all six candidates were elected to serve for a one year term. Set for the below are
the number of votes cast for the election of and the number of votes withheld from each candidate. As the election was uncontested, there were no broker non-votes.



|                 |  | Votes     
|---------------- |  | ----------
|Nominees         |  | For       
|A. Clinton Allen |  | 19,853,113
|Q. David Bowers* |  | 12,973,113
|Ben A. Frydman   |  | 20,787,033
|David G. Hall    |  | 20,767,033
|James ONeal*    |  | 11,571,513
|Van Simmons      |  | 19,365,433
|                 |  |           

| | * |  | Mr. ONeal resigned from the Board in December 2002 and Mr. Bowers resigned from the Board in February 2003. In January 2003, Michael R. Haynes and A.J.
Bert Moyer were appointed as members of the Board.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Reverse Stock Split.    The amendment to the Companys Certificate of Incorporation approving the Reverse Stock Split was approved by the following vote of the
Companys stockholders:



|Votes For  |  | Votes Against |  | Votes Abstaining |  | Broker Non-Votes
|---------- |  | ------------- |  | ---------------- |  | ----------------
|21,135,672 |  | 269,619       |  | 18,050           |  | - 0 -           



ITEM 6.    EXHIBITS AND REPORTS ON FORM 8-K AND EXHIBITS



|(a)    Exhibits |  | 
|--------------- |  | 



Exhibit 99.1    Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002



Exhibit
99.2    Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002



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



A Current Report on Form 8-K dated December 4, 2002 was filed to report, under Item 5  Other Events, the approval by stockholders on
December 4, 2002 and the subsequent effectuation, on December 9, 2002, of a one-for-four reverse stock split of the Companys outstanding shares and the appointment of A. Clinton Allen as Chairman of the Board of Directors.



A Current Report on Form 8-K dated January 1, 2003 was filed
to report, under Item 5  Other Events, the appointment of Michael R. Haynes as Chief Executive Officer and a director of the Company, and the appointment of A. J. Bert Moyer as a member of the Companys Board of Directors and
of the Audit Committee of the Board.



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SIGNATURES



Pursuant
to the requirement of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.



|      |  |                   |  | COLLECTORS UNIVERSE, INC.
|----- |  | ----------------- |  | -------------------------
|     
|Date: |  | February 14, 2003 |  |                          
|      |  |                   |  |                          
|      |  |                   |  |                          
|     
|Date: |  | February 14, 2003 |  |                          
|      |  |                   |  |                          



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CERTIFICATIONS OF CHIEF EXECUTIVE OFFICER

UNDER

SECTION 302 OF THE SARBANES-OXLEY ACT



I, Michael R. Haynes, Chief Executive Officer of Collectors Universe, Inc. certify that:



| | 1. |  | I have reviewed this quarterly report on Form 10-Q of Collectors Universe, Inc.;
| | -- |  | --------------------------------------------------------------------------------



| | 2. |  | Based on my knowledge, this quarterly 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 quarterly report;
| | -- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 3. |  | Based on my knowledge, the financial statements, and other financial information included in this quarterly 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 quarterly report.
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 4. |  | The registrants other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rules
13a-14 and 15d-14 of the Exchange Act) for the registrant and we have:
| | -- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | a) |  | designed such disclosure controls and procedures 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 quarterly report is being prepared;
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | b) |  | evaluated the effectiveness of the registrants disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly
report (the Evaluation Date); and
| | -- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | c) |  | presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation
Date;
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------



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



| | a) |  | all significant deficiencies in the design or operation of internal controls which could adversely affect the registrants ability to record, process,
summarize and report financial data and have identified for the registrants auditors any material weaknesses in internal controls; and
| | -- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | b) |  | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal controls; and
| | -- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------



| | 6. |  | The registrants other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or
in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Date: February 14, 2003



/s/ MICHAEL R. HAYNESMichael R. HaynesChief Executive Officer




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CERTIFICATIONS OF CHIEF FINANCIAL OFFICER

UNDER

SECTION 302 OF THE SARBANES-OXLEY ACT



I, Michael J. Lewis, Chief Financial Officer of Collectors Universe, Inc., certify that:



| | 1. |  | I have reviewed this quarterly report on Form 10-Q of Collectors Universe, Inc.;
| | -- |  | --------------------------------------------------------------------------------



| | 2. |  | Based on my knowledge, this quarterly 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 quarterly report;
| | -- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 3. |  | Based on my knowledge, the financial statements, and other financial information included in this quarterly 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 quarterly report.
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 4. |  | The registrants other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rules
13a-14 and 15d-14 of the Exchange Act) for the registrant and we have:
| | -- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | a) |  | designed such disclosure controls and procedures 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 quarterly report is being prepared;
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | b) |  | evaluated the effectiveness of the registrants disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly
report (the Evaluation Date); and
| | -- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | c) |  | presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation
Date;
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------



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



| | a) |  | all significant deficiencies in the design or operation of internal controls which could adversely affect the registrants ability to record, process,
summarize and report financial data and have identified for the registrants auditors any material weaknesses in internal controls; and
| | -- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | b) |  | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal controls; and
| | -- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------



| | 6. |  | The registrants other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or
in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Date: February 14, 2003



/s/    MICHAEL J. LEWISMichael J. LewisChief Financial Officer




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INDEX TO
EXHIBITS



|Number       |  | Description                                                   
|------------ |  | --------------------------------------------------------------
|            
|Exhibit 99.1 |  | CEO Certifications under Section 906 of the Sarbanes-Oxley Act
|            
|Exhibit 99.2 |  | CFO Certifications under Section 906 of the Sarbanes-Oxley Act