although competitive erosion in the mid-2000s had temporarily interrupted FVC's sales growth, better economic conditions in the markets of developed countries,together with FVC's recent introduction of new products for the aerospace and defense industries, offered the company excellent prospects for improved performance. sales in the first quarter of 2008 grew 23% over the corresponding period in 2007 , at a time when many of FVC's competitors experienced limited growth prospects.exhibits 1 and 2 show the most recent financial statements for FVC.