Consolidated Statements of Income (1) Assumes exercise of dilutive stock options calculated under the treasury stock method. The accompanying notes are an integral part of these consolidated financial statements. Years ended December 31,  2002) 2001) 2000) Sales $345,725,322 ) $387,080,690 ) $462,948,721 ) Cost of sales 170,789,635 ) 213,759,507 ) 233,429,280 ) Gross profit 174,935,687) 173,321,183) 229,519,441) Selling, general, and administrative expenses 81,116,094 ) 95,954,228 ) 87,115,889 ) Research and development expenses 56,295,048 ) 58,934,952 ) 50,628,190 ) Operating income 37,524,545) 18,432,003) 91,775,362) Interest income 9,112,761 ) 8,076,522 ) 9,024,543 ) Interest expense (2,571,953) (2,068,653) (1,802,158) Other income (expenses) 133,029 ) (28,527) (4,125) Net realized investment gains (losses) (12,021,809) (673,851) 84,040,126 ) Income before provision for income taxes 32,176,573) 23,737,494) 183,033,748) Provision for income taxes 7,400,611 ) 6,408,965 ) 62,231,487 ) Net income $24,775,962) $17,328,529) $120,802,261) Weighted average shares outstanding 38,045,128 ) 38,567,324 ) 38,647,288 ) Weighted average shares outstanding assuming dilution (1) 38,221,750 ) 38,676,187 ) 39,704,286 ) Earnings per common share – basic $0.65 ) $0.45 ) $3.13 ) Earnings per common share – assuming dilution (1) $0.65) $0.45 ) $3.04 ) 21 Financial Results