Product line enhancements promise to enhance the company's already commanding advantage. Competition remains limited to niche markets. Acquisitions of leading up-and-comers have been made in the past. That strategy is likely to be repeated in the future, reinforcing growth. Cash flow generation continues to be abundant. Operating margins are in the 50% range and produce far more money than the company requires for working capital and fixed asset investments.
Our 2012 estimates are unchanged. Earnings appear headed towards $2.85 a share (+13%) on sales of $825 million (+18%). Costs associated with an acquisition completed in 2011 are the main reason earnings will climb less briskly than revenue. Long term organic growth of 15% annually appears sustainable. Acquisitions promise to contribute additional leverage.
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