Anaren Inc. (ANEN) filed Quarterly Report for the period ended 2010-03-31.

Anaren Inc. has a market cap of $218.4 million; its shares were traded at around $14.68 with a P/E ratio of 16.9 and P/S ratio of 1.3. ANEN is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:Cost of sales 60.1% 65.3% 62.9% 68.4%
- - - -
Gross profit 39.9% 34.7% 37.1% 31.6%
- - - -



Operating expenses:
Marketing 5.7% 5.4% 5.7% 5.3%
Research and development 9.5% 7.8% 9.0% 7.7%
General and administrative 12.1% 10.6% 11.5% 11.4%
- - - -
Total operating expenses 27.3% 23.8% 26.2% 24.4%
- - - -



Interest expense (0.3)% (0.7)% (0.4)% (1.0)%
Other, primarily interest income 0.2% 0.6% 0.2% 0.8%
- - - -
Total other income (expense), net (0.1)% (0.1)% (0.2)% (0.2)%
- - - -



Income before income taxes 12.5% 10.8% 10.7% 7.0%
Income taxes 1.7% 2.8% 2.7% 1.8%
- - - -
Net income 10.8% 8.0% 8.0% 5.2%
= = = =



Income Taxes. Income taxes for the third quarter of fiscal 2010 were $0.7
million (1.7% of net sales), representing an effective tax rate of 13.4%. This
compares to income tax expense of $1.2 million (2.8% of net sales) for the third
quarter of fiscal 2009, representing an effective tax rate of 25.7%. The
effective tax rate for the third quarter of fiscal 2010 was a result of the
inclusion of the effects of the settlement of the IRS examination of the
Company's fiscal 2007 and 2008 returns, as well as, adjustments to the balances
for uncertain tax positions related to the results of the examination amounting
to a reduction in tax expense of approximately $1.0 million, or $0.07 per
diluted share. The projected effective tax rate for fiscal 2010 absent IRS
settlements and reserve adjustments, is expected to be approximately 32.0%.



Income Taxes. Income taxes for the first nine months of fiscal 2010 were $3.3
million (2.7% of net sales), representing an effective tax rate of 25.1%. This
compares to income tax expense of $2.3 million (1.8% of net sales) for the first
nine months of fiscal 2009, representing an effective tax rate of 26.2%. The
effective tax rate for the first nine months of fiscal 2010 was a result of the
inclusion of the effects of the settlement of the IRS examination of the
Company's fiscal 2007 and 2008 returns, as well as, adjustments to reserves for
uncertain tax positions related to the results of the examination amounting to a
reduction in tax expense of approximately $1.0 million, or $0.07 per diluted
share in the current third quarter. The projected effective tax rate for fiscal
2010 absent adjustments described above, is expected to be approximately 32.0%.



Read the The complete Report

What Worked in the Stock Market for Long-Term Investors?

Extensive research has found that the companies with predictable revenues and earnings outperform the market average; they also suffer lower probability of loss. As a matter of fact, this kind of companies are exactly what Warren Buffett wants to buy and hold forever. Please read the research about what worked in the stock market:

Part I: What worked in the market from 1998-2008? Part I: Predictability Rank
Part II: Role of Valuations
Part III: Intrinsic Value, Discounted Cash Flow and Margin of Safety

More Gurufocus Links

Latest Guru Picks	Value Strategies
Warren Buffett Portfolio	Ben Graham Net-Net
Real Time Picks	Buffett-Munger Screener
Aggregated Portfolio	Undervalued Predictable
ETFs, Options	Low P/S Companies
Insider Trends	10-Year Financials
52-Week Lows	Interactive Charts
Model Portfolios	DCF Calculator
RSS Feed	Monthly Newsletters
The All-In-One Screener	Portfolio Tracking Tool