13F-HR 1 v057669_13fhr.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 13F Form 13F COVER PAGE Report for the Calendar Year or Quarter Ended: September 30, 2006 Check here if Amendment |_|; Amendment Number :______________ This Amendment (Check only one.): |_| is a restatement. |_| adds new holdings entries. Institutional Investment Manager Filing this Report: Name: Heartland Advisors, Inc. Address: 789 N. Water St. Suite 500 Milwaukee, WI 53202 Form 13F File Number: 28-3516 The institutional investment manager filing this report and the person by whom it is signed hereby represent that the person signing the report is authorized to submit it, that all information contained herein is true, correct and complete, and that it is understood that all required items, statements, schedules, lists, and tables, are considered integral parts of this form. Person Signing this Report on Behalf of Reporting Manager: Name: Paul T. Beste Title: Chief Operating Officer Phone: 414-347-7777 Signature, Place and Date of Signing: /s/ Paul T. Beste Milwaukee, Wisconsin November 14, 2006 ------------------ -------------------- ----------------- [Signature] [City, State] [Date] Report Type (Check only one.): |X| 13F HOLDINGS REPORT. (Check here if all holdings of this reporting manager are reported in this report.) |_| 13F NOTICE. (Check here if no holdings reported are in this report, and all holdings are reported by other reporting manager(s).) |_| 13F COMBINATION REPORT. (Check here if a portion of the holdings for this reporting manager are reported in this report and a portion are reported by other reporting manager(s). Form 13F SUMMARY PAGE Report Summary: Number of Other Included Managers: 0 - Form 13F Information Table Entry Total: 321 --- Form 13F Information Table Value Total: $ 2261896 --------- (thousands) List of Other Included Managers: Provide a numbered list of the name(s) and Form 13F file number(s) of all institutional investment managers with respect to which this report is filed, other than the manager filing this report. NONE

VOTING AUTHORITY VALUE SHARES SH/ PUT/ INVSTMT OTHER ------------------------ NAME OF ISSUER TITLE OF CLASS CUSIP (X $1000) PRN AMT PRN CALL DSCRETN MANAGERS SOLE SHARED NONE ----------------------------------------------------------------------------------------------------------------------------- AAON INC COM PAR $0.004 000360206 2297 100700 SH SOLE 100700 0 0 AAR CORP COM 000361105 3576 150000 SH SOLE 150000 0 0 ABM INDS INC COM 000957100 9673 515600 SH SOLE 512100 0 3500 ACETO CORP COM 004446100 2263 321500 SH SOLE 321500 0 0 ACTUATE CORP COM 00508B102 18232 4124800 SH SOLE 4117900 0 6900 ADTRAN INC COM 00738A106 817 34250 SH SOLE 34250 0 0 AGILE SOFTWARE CORP DEL COM 00846X105 2612 400000 SH SOLE 400000 0 0 AGRIUM INC COM 008916108 11304 418695 SH SOLE 417895 0 800 AIRNET SYS INC COM 009417106 4934 1422000 SH SOLE 1322000 0 100000 ALAMO GROUP INC COM 011311107 3425 150600 SH SOLE 150600 0 0 ALASKA AIR GROUP INC COM 011659109 38658 1016250 SH SOLE 976150 0 40100 ALCOA INC COM 013817101 7854 280113 SH SOLE 280013 0 100 ALLEGHENY ENERGY INC COM 017361106 1765 43950 SH SOLE 43950 0 0 ALLIED DEFENSE GROUP INC COM 019118108 3290 200000 SH SOLE 200000 0 0 ALLSTATE CORP COM 020002101 11193 178431 SH SOLE 178331 0 100 AMERICA SVC GROUP INC COM 02364L109 5158 396435 SH SOLE 396435 0 0 AMERICAN STD COS INC DEL COM 029712106 9063 215950 SH SOLE 215750 0 200 AMERICAS CAR MART INC COM 03062T105 985 59900 SH SOLE 59900 0 0 AMERISERV FINL INC COM 03074A102 5180 1169400 SH SOLE 1169400 0 0 ANADARKO PETE CORP COM 032511107 8346 190423 SH SOLE 190423 0 0 ANALOGIC CORP COM PAR $0.05 032657207 11206 218363 SH SOLE 218063 0 300 ANALYSTS INTL CORP COM 032681108 3376 1600000 SH SOLE 1600000 0 0 AP PHARMA INC COM 00202J104 858 801500 SH SOLE 801500 0 0 APOGEE ENTERPRISES INC COM 037598109 6536 429750 SH SOLE 429750 0 0 APPLIANCE RECYCLING CTRS AME COM NEW 03814F205 420 200000 SH SOLE 200000 0 0 APPLIED MATLS INC COM 038222105 353 19915 SH SOLE 19915 0 0 APPLIED SIGNAL TECHNOLOGY IN COM 038237103 12608 849595 SH SOLE 754495 0 95100 ASHWORTH INC COM 04516H101 4175 609431 SH SOLE 609431 0 0 ASSOCIATED BANC CORP COM 045487105 15948 490700 SH SOLE 490700 0 0 ASSURED GUARANTY LTD COM G0585R106 7779 300000 SH SOLE 300000 0 0 ASTEC INDS INC COM 046224101 2525 100000 SH SOLE 100000 0 0 AT&T INC COM 00206R102 7661 235295 SH SOLE 235195 0 100 AVNET INC COM 053807103 8534 434950 SH SOLE 434950 0 0 AXCELIS TECHNOLOGIES INC COM 054540109 15401 2181500 SH SOLE 2162400 0 19100 BADGER METER INC COM 056525108 20076 797000 SH SOLE 749400 0 47600 BANCTRUST FINANCIAL GP COM 05978R107 2493 89400 SH SOLE 89400 0 0 BANK OF AMERICA CORPORATION COM 060505104 9742 181850 SH SOLE 181750 0 100 BARRETT BUSINESS SERVICES IN COM 068463108 10784 502282 SH SOLE 474600 0 27682 BIO IMAGING TECHNOLOGIES INC COM 09056N103 655 154800 SH SOLE 154800 0 0 BIOSCRIP INC COM 09069N108 15605 5167172 SH SOLE 4697116 0 470056 BIOVAIL CORP COM 09067J109 32851 2158860 SH SOLE 2057060 0 101800 BLOCK H & R INC COM 093671105 7305 336000 SH SOLE 335800 0 200 BOFI HLDG INC COM 05566U108 1347 207297 SH SOLE 207297 0 0 BRIGHAM EXPLORATION CO COM 109178103 976 144100 SH SOLE 142100 0 2000 BRISTOW GROUP INC COM 110394103 6880 200000 SH SOLE 200000 0 0 BUCA INC COM 117769109 13738 2606850 SH SOLE 2424050 0 182800 BUCKEYE TECHNOLOGIES INC COM 118255108 1843 216800 SH SOLE 216800 0 0 C D I CORP COM 125071100 2589 125000 SH SOLE 125000 0 0 CABOT OIL & GAS CORP COM 127097103 697 14550 SH SOLE 14550 0 0

VOTING AUTHORITY VALUE SHARES SH/ PUT/ INVSTMT OTHER ------------------------ NAME OF ISSUER TITLE OF CLASS CUSIP (X $1000) PRN AMT PRN CALL DSCRETN MANAGERS SOLE SHARED NONE ----------------------------------------------------------------------------------------------------------------------------- CALGON CARBON CORP COM 129603106 5083 1149900 SH SOLE 1149900 0 0 CALLON PETE CO DEL COM 13123X102 4560 336300 SH SOLE 334800 0 1500 CAMBREX CORP COM 132011107 10481 506100 SH SOLE 506100 0 0 CAPITAL BK CORP COM 139793103 2885 164200 SH SOLE 164200 0 0 CAPITAL LEASE FDG INC COM 140288101 7763 700000 SH SOLE 700000 0 0 CARACO PHARMACEUTICAL LABS L COM 14075T107 5080 500000 SH SOLE 500000 0 0 CARLISLE COS INC COM 142339100 1897 22558 SH SOLE 22558 0 0 CASUAL MALE RETAIL GRP INC COM 148711104 6865 500000 SH SOLE 500000 0 0 CBS CORP NEW CL B 124857202 8108 287825 SH SOLE 287725 0 100 CENTRAL PKG CORP COM 154785109 11563 700800 SH SOLE 677200 0 23600 CF INDS HLDGS INC COM 125269100 4699 275300 SH SOLE 275000 0 300 CHAMPS ENTMT INC DEL COM 158787101 3680 605196 SH SOLE 566696 0 38500 CHEMTURA CORP COM 163893100 6586 759662 SH SOLE 759329 0 333 CHINA BAK BATTERY INC COM 16936Y100 2038 303200 SH SOLE 303200 0 0 CHITTENDEN CORP COM 170228100 5738 200000 SH SOLE 200000 0 0 CLARK INC COM 181457102 10817 959800 SH SOLE 879100 0 80700 COHU INC COM 192576106 4903 275000 SH SOLE 275000 0 0 COMFORT SYS USA INC COM 199908104 3596 313800 SH SOLE 313000 0 800 COMPANHIA DE SANEAMENTO BASI SPONSORED ADR 20441A102 2167 72000 SH SOLE 72000 0 0 COMPUDYNE CORP COM PAR $0.75 204795306 5514 904000 SH SOLE 868500 0 35500 CONOCOPHILLIPS COM 20825C104 8082 135765 SH SOLE 135565 0 200 COOPER TIRE & RUBR CO COM 216831107 856 85100 SH SOLE 85100 0 0 CORGI INTERNATIONAL LIMITED SPONSORED ADR 21872Q103 1077 1025800 SH SOLE 1025800 0 0 COST PLUS INC CALIF COM 221485105 403 33650 SH SOLE 33650 0 0 COVENANT TRANS INC CL A 22284P105 612 50096 SH SOLE 50096 0 0 CREDENCE SYS CORP COM 225302108 110 38550 SH SOLE 38550 0 0 CRITICARE SYS INC COM 226901106 4892 1254400 SH SOLE 1254400 0 0 CUBIC CORP COM 229669106 7343 375000 SH SOLE 375000 0 0 DEERE & CO COM 244199105 3984 47475 SH SOLE 47475 0 0 DIGITAS INC COM 25388K104 2405 250000 SH SOLE 250000 0 0 DISCOVERY LABORATORIES INC N COM 254668106 2998 1407500 SH SOLE 1397000 0 10500 DOLLAR TREE STORES INC COM 256747106 1035 33430 SH SOLE 33430 0 0 DOW CHEM CO COM 260543103 3960 101600 SH SOLE 101600 0 0 DR HORTON INC COM 23331A109 4288 179050 SH SOLE 178650 0 400 DUCKWALL-ALCO STORES INC NEW COM 264142100 14158 380400 SH SOLE 380400 0 0 DUCOMMUN INC DEL COM 264147109 1153 61800 SH SOLE 60700 0 1100 DYNAMICS RESH CORP COM 268057106 7980 802000 SH SOLE 802000 0 0 EASTERN VA BANKSHARES INC COM 277196101 3009 142200 SH SOLE 142200 0 0 EDUCATE INC COM 28138P100 3196 400000 SH SOLE 400000 0 0 EFJ INC COM 26843B101 4452 600000 SH SOLE 600000 0 0 ELKCORP COM 287456107 6590 242725 SH SOLE 242725 0 0 EMAK WORLDWIDE INC COM 26861V104 3898 618783 SH SOLE 511983 0 106800 EMRISE CORP COM 29246J101 955 955300 SH SOLE 955300 0 0 EMS TECHNOLOGIES INC COM 26873N108 10930 582000 SH SOLE 558800 0 23200 EPIQ SYS INC COM 26882D109 4538 308500 SH SOLE 308500 0 0 EPLUS INC COM 294268107 2791 286209 SH SOLE 286209 0 0 EQUITY INNS INC COM 294703103 263 16500 SH SOLE 15500 0 1000 ESPEED INC COM 296643109 7700 837000 SH SOLE 837000 0 0 EXPONENT INC COM 30214U102 15106 906200 SH SOLE 847600 0 58600 EXPRESS 1 EXPEDITED SOLUTION COM 30217Q108 248 200000 SH SOLE 200000 0 0 EXTREME NETWORKS INC COM 30226D106 3773 1039500 SH SOLE 914500 0 125000 F N B CORP VA COM 302930102 5261 146108 SH SOLE 146108 0 0 FEDERAL SIGNAL CORP COM 313855108 19686 1290893 SH SOLE 1240393 0 50500 FIDELITY SOUTHN CORP NEW COM 316394105 1106 61113 SH SOLE 61113 0 0 FIRST CONSULTING GROUP INC COM 31986R103 19383 1988000 SH SOLE 1928700 0 59300 FIRSTCITY FINL CORP COM 33761X107 12167 1151050 SH SOLE 1102350 0 48700 FLANDERS CORP COM 338494107 10418 1217000 SH SOLE 1198500 0 18500 FLEXSTEEL INDS INC COM 339382103 615 47300 SH SOLE 19300 0 28000

VOTING AUTHORITY VALUE SHARES SH/ PUT/ INVSTMT OTHER ------------------------ NAME OF ISSUER TITLE OF CLASS CUSIP (X $1000) PRN AMT PRN CALL DSCRETN MANAGERS SOLE SHARED NONE ----------------------------------------------------------------------------------------------------------------------------- FOREST OIL CORP COM PAR $0.01 346091705 6717 212640 SH SOLE 212640 0 0 FORRESTER RESH INC COM 346563109 4149 157700 SH SOLE 157700 0 0 FRANKLIN BK CORP DEL COM 352451108 3710 186600 SH SOLE 161700 0 24900 FREDS INC CL A 356108100 4417 350000 SH SOLE 350000 0 0 FRONTIER AIRLINES HOLDINGS I COM 359059102 1444 175000 SH SOLE 175000 0 0 FSI INTL INC COM 302633102 2875 500000 SH SOLE 500000 0 0 FTI CONSULTING INC COM 302941109 7538 300800 SH SOLE 300800 0 0 FUEL-TECH N V COM 359523107 4467 300000 SH SOLE 300000 0 0 GENCO SHIPPING & TRADING LTD SHS Y2685T107 14858 655700 SH SOLE 652900 0 2800 GENERAL ELECTRIC CO COM 369604103 219 6217 SH SOLE 5625 0 592 GENTEX CORP COM 371901109 291 20451 SH SOLE 20451 0 0 GEO GROUP INC COM 36159R103 12675 300000 SH SOLE 300000 0 0 GERDAU AMERISTEEL CORP COM 37373P105 2182 239000 SH SOLE 239000 0 0 GLATFELTER COM 377316104 6558 484000 SH SOLE 483100 0 900 GLOBAL-TECH APPLIANCES INC ORD G39320109 745 304100 SH SOLE 304100 0 0 GOODRICH CORP COM 382388106 8924 220235 SH SOLE 220135 0 100 GOVERNMENT PPTYS TR INC COM 38374W107 16809 1863500 SH SOLE 1639500 0 224000 GREY WOLF INC COM 397888108 23581 3530050 SH SOLE 3350750 0 179300 GULF ISLAND FABRICATION INC COM 402307102 20580 788800 SH SOLE 788800 0 0 HAMPSHIRE GROUP LTD COM 408859106 5763 465540 SH SOLE 465540 0 0 HELEN OF TROY CORP LTD COM G4388N106 3512 200000 SH SOLE 200000 0 0 HEWLETT PACKARD CO COM 428236103 642 17486 SH SOLE 17386 0 100 HI/FN INC COM 428358105 5310 1127300 SH SOLE 1126600 0 700 HOOPER HOLMES INC COM 439104100 11768 3491900 SH SOLE 3481900 0 10000 HORACE MANN EDUCATORS CORP N COM 440327104 3846 200000 SH SOLE 200000 0 0 HUDSON HIGHLAND GROUP INC COM 443792106 22071 2252100 SH SOLE 2252100 0 0 HUNT J B TRANS SVCS INC COM 445658107 8860 426600 SH SOLE 426400 0 200 HUNTSMAN CORP COM 447011107 1048 57600 SH SOLE 56100 0 1500 HUTCHINSON TECHNOLOGY INC COM 448407106 11781 560200 SH SOLE 547800 0 12400 IMAGE SENSING SYS INC COM 45244C104 2621 209995 SH SOLE 209995 0 0 INDEPENDENT BANK CORP MASS COM 453836108 6122 188257 SH SOLE 188257 0 0 INDUSTRIAL DISTR GROUP INC COM 456061100 2661 301000 SH SOLE 301000 0 0 INPUT/OUTPUT INC COM 457652105 17433 1755600 SH SOLE 1755600 0 0 INSITUFORM TECHNOLOGIES INC CL A 457667103 2428 100000 SH SOLE 100000 0 0 INTER TEL INC COM 458372109 5400 250000 SH SOLE 250000 0 0 INTERDIGITAL COMMUNICATIONS COM 45866A105 117578 3448025 SH SOLE 3363325 0 84700 INTERSECTIONS INC COM 460981301 16494 1787026 SH SOLE 1679359 0 107667 INVACARE CORP COM 461203101 6534 277800 SH SOLE 277800 0 0 INVENTURE GROUP INC COM 461214108 5364 2253922 SH SOLE 2253922 0 0 ISOLAGEN INC COM 46488N103 1675 485400 SH SOLE 485400 0 0 JACUZZI BRANDS INC COM 469865109 2895 289800 SH SOLE 289800 0 0 JOHNSON CTLS INC COM 478366107 1700 23700 SH SOLE 23700 0 0 K TRON INTL INC COM 482730108 5058 80000 SH SOLE 64200 0 15800 KEANE INC COM 486665102 7227 501500 SH SOLE 501500 0 0 KELLY SVCS INC CL A 488152208 3426 125000 SH SOLE 125000 0 0 L S B BANCSHARES N C COM 502158108 427 25024 SH SOLE 25024 0 0 LABRANCHE & CO INC COM 505447102 4978 480000 SH SOLE 480000 0 0 LANDRYS RESTAURANTS INC COM 51508L103 488 16200 SH SOLE 16200 0 0 LANTRONIX INC COM 516548104 8550 5700000 SH SOLE 5700000 0 0 LATTICE SEMICONDUCTOR CORP COM 518415104 6881 1009000 SH SOLE 1009000 0 0 LEAPFROG ENTERPRISES INC CL A 52186N106 3805 479800 SH SOLE 479800 0 0 LECG CORP COM 523234102 5628 300000 SH SOLE 300000 0 0 LESCO INC OHIO COM 526872106 2818 347901 SH SOLE 347901 0 0 LIONS GATE ENTMNT CORP COM NEW 535919203 12398 1238600 SH SOLE 1238600 0 0 LSI INDS INC COM 50216C108 713 43900 SH SOLE 33300 0 10600 MAGAL SECURITY SYS LTD ORD M6786D104 2607 275000 SH SOLE 275000 0 0 MARSHALL & ILSLEY CORP COM 571834100 10029 208147 SH SOLE 207547 0 600 MARTEN TRANS LTD COM 573075108 14132 826900 SH SOLE 798800 0 28100

VOTING AUTHORITY VALUE SHARES SH/ PUT/ INVSTMT OTHER ------------------------ NAME OF ISSUER TITLE OF CLASS CUSIP (X $1000) PRN AMT PRN CALL DSCRETN MANAGERS SOLE SHARED NONE ----------------------------------------------------------------------------------------------------------------------------- MASCO CORP COM 574599106 1799 65600 SH SOLE 65600 0 0 MATRIA HEALTHCARE INC COM NEW 576817209 1395 50200 SH SOLE 50200 0 0 MAXIMUS INC COM 577933104 6525 250000 SH SOLE 250000 0 0 MCDATA CORP CL A 580031201 14123 2807757 SH SOLE 2807757 0 0 MEADE INSTRUMENTS CORP COM 583062104 1125 500000 SH SOLE 500000 0 0 MEADOWBROOK INS GROUP INC COM 58319P108 4504 400000 SH SOLE 400000 0 0 MEDICAL PPTYS TRUST INC COM 58463J304 18837 1406800 SH SOLE 1300200 0 106600 MEDICAL STAFFING NETWK HLDGS COM 58463F104 7331 1178600 SH SOLE 1116800 0 61800 MEDTOX SCIENTIFIC INC COM NEW 584977201 7010 713150 SH SOLE 674750 0 38400 MEDWAVE INC COM 585081102 2018 1230200 SH SOLE 1230200 0 0 MEMC ELECTR MATLS INC COM 552715104 7614 207875 SH SOLE 207875 0 0 MENTOR GRAPHICS CORP COM 587200106 10142 720300 SH SOLE 719600 0 700 MESA AIR GROUP INC COM 590479101 6424 827800 SH SOLE 825400 0 2400 MET PRO CORP COM 590876306 5719 435600 SH SOLE 430600 0 5000 METAL MGMT INC COM NEW 591097209 4447 159725 SH SOLE 159725 0 0 METASOLV INC COM 59139P104 3698 1220300 SH SOLE 1215300 0 5000 MFRI INC COM 552721102 8268 558678 SH SOLE 558678 0 0 MGIC INVT CORP WIS COM 552848103 6373 106275 SH SOLE 106175 0 100 MIDWEST AIR GROUP INC COM 597911106 10366 1315500 SH SOLE 1315500 0 0 MOCON INC COM 607494101 1932 200000 SH SOLE 200000 0 0 MODINE MFG CO COM 607828100 507 20850 SH SOLE 20850 0 0 MODTECH HLDGS INC COM 60783C100 8740 1571882 SH SOLE 1443582 0 128300 MONTEREY GOURMET FOODS INC COM 612570101 2306 609929 SH SOLE 608229 0 1700 MOTOROLA INC COM 620076109 10026 401047 SH SOLE 400647 0 400 NATCO GROUP INC CL A 63227W203 5835 202600 SH SOLE 202300 0 300 NATIONAL HOME HEALTH CARE CO COM 636380107 4322 441000 SH SOLE 441000 0 0 NATROL INC COM 638789107 1185 828997 SH SOLE 828997 0 0 NAUTILUS INC COM 63910B102 9611 699000 SH SOLE 675900 0 23100 NEWPARK RES INC COM PAR $.01NEW 651718504 36226 6796550 SH SOLE 6479150 0 317400 NOBLE INTL LTD COM 655053106 5004 400000 SH SOLE 400000 0 0 NORTHWEST PIPE CO COM 667746101 7500 250000 SH SOLE 250000 0 0 NOVELL INC COM 670006105 6732 1100000 SH SOLE 1100000 0 0 NU SKIN ENTERPRISES INC CL A 67018T105 5932 338600 SH SOLE 338400 0 200 O I CORP COM 670841105 2459 245900 SH SOLE 245900 0 0 OAKLEY INC COM 673662102 8525 500000 SH SOLE 500000 0 0 OIL DRI CORP AMER COM 677864100 11440 755125 SH SOLE 709750 0 45375 OMNOVA SOLUTIONS INC COM 682129101 4234 1012900 SH SOLE 1012900 0 0 ON ASSIGNMENT INC COM 682159108 3704 377600 SH SOLE 377600 0 0 OPNET TECHNOLOGIES INC COM 683757108 3429 261550 SH SOLE 261550 0 0 OPSWARE INC COM 68383A101 901 100000 SH SOLE 100000 0 0 OREGON STL MLS INC COM 686079104 7929 162250 SH SOLE 162250 0 0 ORIGIN ARGITECH LIMITED SHS G67828106 3648 300000 SH SOLE 300000 0 0 ORTHOLOGIC CORP COM 68750J107 1675 1288300 SH SOLE 1133500 0 154800 ORTHOVITA INC COM 68750U102 4492 1287072 SH SOLE 1284872 0 2200 OSTEOTECH INC COM 688582105 6997 1710700 SH SOLE 1710700 0 0 PAB BANKSHARES INC COM 69313P101 2135 107500 SH SOLE 107500 0 0 PACIFIC PREMIER BANCORP COM 69478X105 5650 470835 SH SOLE 468535 0 2300 PAR PHARMACEUTICAL COS INC COM 69888P106 1828 100200 SH SOLE 100200 0 0 PARAMETRIC TECHNOLOGY CORP COM NEW 699173209 9001 515500 SH SOLE 514800 0 700 PAREXEL INTL CORP COM 699462107 6671 201600 SH SOLE 201600 0 0 PARK ELECTROCHEMICAL CORP COM 700416209 2585 81600 SH SOLE 81600 0 0 PARKERVISION INC COM 701354102 10079 1386356 SH SOLE 1386356 0 0 PATRICK INDS INC COM 703343103 4863 390925 SH SOLE 354625 0 36300 PATTERSON UTI ENERGY INC COM 703481101 1277 53725 SH SOLE 53725 0 0 PDI INC COM 69329V100 20766 1787100 SH SOLE 1677300 0 109800 PEOPLES BANCTRUST INC COM 709796106 203 10700 SH SOLE 10700 0 0 PERMA-FIX ENVIRONMENTAL SVCS COM 714157104 4140 2000000 SH SOLE 2000000 0 0 PEROT SYS CORP CL A 714265105 6895 500000 SH SOLE 500000 0 0

VOTING AUTHORITY VALUE SHARES SH/ PUT/ INVSTMT OTHER ------------------------ NAME OF ISSUER TITLE OF CLASS CUSIP (X $1000) PRN AMT PRN CALL DSCRETN MANAGERS SOLE SHARED NONE ----------------------------------------------------------------------------------------------------------------------------- PFIZER INC COM 717081103 12234 431390 SH SOLE 426190 0 5200 PHOENIX FOOTWEAR GROUP INC COM 71903M100 4048 866800 SH SOLE 864300 0 2500 PLAINS EXPL& PRODTN CO COM 726505100 15542 362200 SH SOLE 352900 0 9300 PLATO LEARNING INC COM 72764Y100 9480 1488200 SH SOLE 1376800 0 111400 PMA CAP CORP CL A 693419202 4466 506300 SH SOLE 503700 0 2600 PORTEC RAIL PRODS INC COM 736212101 5123 533600 SH SOLE 533600 0 0 POWELL INDS INC COM 739128106 6933 313300 SH SOLE 313300 0 0 PPG INDS INC COM 693506107 7184 107100 SH SOLE 107000 0 100 PRESIDENTIAL LIFE CORP COM 740884101 28625 1279600 SH SOLE 1236300 0 43300 PRINCETON REVIEW INC COM 742352107 9949 1920572 SH SOLE 1877572 0 43000 QUAKER CHEM CORP COM 747316107 2151 110600 SH SOLE 110600 0 0 QUEST RESOURCE CORP COM NEW 748349305 6328 712650 SH SOLE 642550 0 70100 QUINTANA MARITIME LTD SHS Y7169G109 6001 585500 SH SOLE 500000 0 85500 QUOVADX INC COM 74913K106 15303 5863400 SH SOLE 5613400 0 250000 RAILAMERICA INC COM 750753105 27542 2522200 SH SOLE 2414500 0 107700 RCM TECHNOLOGIES INC COM NEW 749360400 8004 1578600 SH SOLE 1451100 0 127500 REGIS CORP MINN COM 758932107 14340 400000 SH SOLE 400000 0 0 RENASANT CORP COM 75970E107 4707 167700 SH SOLE 166950 0 750 RENT A CTR INC NEW COM 76009N100 16621 567475 SH SOLE 567275 0 200 RIVERVIEW BANCORP INC COM 769397100 2360 174800 SH SOLE 174800 0 0 ROBBINS & MYERS INC COM 770196103 9916 320700 SH SOLE 320400 0 300 ROSETTA RESOURCES INC COM 777779307 6868 400000 SH SOLE 400000 0 0 RPM INTL INC COM 749685103 8150 429150 SH SOLE 427650 0 1500 RUBY TUESDAY INC COM 781182100 950 33700 SH SOLE 33700 0 0 SAGA COMMUNICATIONS CL A 786598102 1935 250000 SH SOLE 250000 0 0 SAIA INC COM 78709Y105 6520 200000 SH SOLE 200000 0 0 SANFILIPPO JOHN B & SON INC COM 800422107 6826 669262 SH SOLE 618900 0 50362 SCHOOL SPECIALTY INC COM 807863105 3529 100000 SH SOLE 100000 0 0 SCHULMAN A INC COM 808194104 3575 152055 SH SOLE 152055 0 0 SCPIE HLDGS INC COM 78402P104 8463 359500 SH SOLE 359500 0 0 SEAGATE TECHNOLOGY SHS G7945J104 8237 356725 SH SOLE 356725 0 0 SENESCO TECHNOLOGIES INC COM NEW 817208408 1511 1302200 SH SOLE 1292200 0 10000 SENSIENT TECHNOLOGIES CORP COM 81725T100 241 12307 SH SOLE 12307 0 0 SHOE CARNIVAL INC COM 824889109 5562 220555 SH SOLE 209555 0 11000 SIMMONS 1ST NATL CORP CL A $1 PAR 828730200 2179 75100 SH SOLE 75100 0 0 SIMPLETECH INC COM 828823104 7006 769074 SH SOLE 769074 0 0 SIRNA THERAPEUTICS INC COM 829669100 41300 7414653 SH SOLE 7136633 0 278020 SITEL CORP COM 82980K107 13228 4394600 SH SOLE 4204600 0 190000 SKYWORKS SOLUTIONS INC COM 83088M102 16796 3236150 SH SOLE 3227450 0 8700 SM&A COM 78465D105 3668 600300 SH SOLE 600300 0 0 SMITH & WOLLENSKY RESTAURANT COM 831758107 2869 636200 SH SOLE 636200 0 0 SMITHFIELD FOODS INC COM 832248108 9452 349825 SH SOLE 349625 0 200 SMITHWAY MTR XPRESS CORP CL A 832653109 1075 129676 SH SOLE 129676 0 0 SMURFIT-STONE CONTAINER CORP COM 832727101 2396 213950 SH SOLE 213450 0 500 SOUTHERN CMNTY FINL CORP COM 842632101 1319 135682 SH SOLE 135682 0 0 SOUTHWEST AIRLS CO COM 844741108 5610 336738 SH SOLE 336738 0 0 SPAR GROUP INC COM 784933103 1289 1228000 SH SOLE 1228000 0 0 SPECIALTY UNDERWRITERS ALLIA COM 84751T309 5433 654600 SH SOLE 645600 0 9000 SRI/SURGICAL EXPRESS INC COM 78464W104 3665 842500 SH SOLE 767500 0 75000 STAAR SURGICAL CO COM PAR $0.01 852312305 23394 3110850 SH SOLE 2935550 0 175300 STEIN MART INC COM 858375108 3042 200000 SH SOLE 200000 0 0 STEPAN CO COM 858586100 3209 109800 SH SOLE 108400 0 1400 STERIS CORP COM 859152100 7305 303600 SH SOLE 303600 0 0 STERLING FINL CORP WASH COM 859319105 19907 613847 SH SOLE 613847 0 0 STEWART ENTERPRISES INC CL A 860370105 10282 1754600 SH SOLE 1754600 0 0 STIFEL FINL CORP COM 860630102 6712 211466 SH SOLE 202933 0 8533 STRATAGENE CORP COM 86269H107 1296 200000 SH SOLE 200000 0 0 STRATTEC SEC CORP COM 863111100 3701 96700 SH SOLE 96700 0 0

VOTING AUTHORITY VALUE SHARES SH/ PUT/ INVSTMT OTHER ------------------------ NAME OF ISSUER TITLE OF CLASS CUSIP (X $1000) PRN AMT PRN CALL DSCRETN MANAGERS SOLE SHARED NONE ----------------------------------------------------------------------------------------------------------------------------- STRIDE RITE CORP COM 863314100 6980 500000 SH SOLE 500000 0 0 SUMMIT BK CORP GA COM 866013105 2353 100700 SH SOLE 100700 0 0 SUNTRUST BKS INC COM 867914103 10025 129725 SH SOLE 129625 0 100 SYNERGX SYSTEMS INC COM 87160C106 417 263866 SH SOLE 263866 0 0 TASTY BAKING CO COM 876553306 3970 434877 SH SOLE 434877 0 0 TECHTEAM GLOBAL INC COM 878311109 7956 1005800 SH SOLE 1005800 0 0 TENNESSEE COMMERCE BANCORP I COM 88043P108 2763 125000 SH SOLE 125000 0 0 TEXAS UTD BANCSHARES INC COM 88224Q107 1872 100000 SH SOLE 100000 0 0 THIRD WAVE TECHNOLOGIES INC COM 88428W108 6970 1555900 SH SOLE 1555900 0 0 TIDEWATER INC COM 886423102 6180 139845 SH SOLE 139745 0 100 TIMBERLAND BANCORP INC COM 887098101 1794 51100 SH SOLE 51100 0 0 TODCO COM 88889T107 5882 170000 SH SOLE 170000 0 0 TOLL BROTHERS INC COM 889478103 3803 135450 SH SOLE 135450 0 0 TRINITY BIOTECH PLC SPON ADR NEW 896438306 6723 722950 SH SOLE 722950 0 0 TRIUMPH GROUP INC NEW COM 896818101 385 9100 SH SOLE 8700 0 400 TUESDAY MORNING CORP COM NEW 899035505 3470 250000 SH SOLE 250000 0 0 TYCO INTL LTD NEW COM 902124106 11771 420540 SH SOLE 417340 0 3200 TYSON FOODS INC CL A 902494103 901 56750 SH SOLE 56750 0 0 UGI CORP NEW COM 902681105 9113 372725 SH SOLE 372125 0 600 UNION PAC CORP COM 907818108 7662 87066 SH SOLE 86866 0 200 UNITED AUTO GROUP INC COM 909440109 276 11800 SH SOLE 11800 0 0 UNIVERSAL CORP VA COM 913456109 9106 249275 SH SOLE 249075 0 200 UNUMPROVIDENT CORP COM 91529Y106 17165 885250 SH SOLE 884950 0 300 UROPLASTY INC COM NEW 917277204 2295 725000 SH SOLE 725000 0 0 URS CORP NEW COM 903236107 13569 348901 SH SOLE 341801 0 7100 USI HLDGS CORP COM 90333H101 3388 250000 SH SOLE 250000 0 0 VISTACARE INC CL A 92839Y109 5200 500000 SH SOLE 500000 0 0 WABASH NATL CORP COM 929566107 1845 134800 SH SOLE 134800 0 0 WAL MART STORES INC COM 931142103 12157 246491 SH SOLE 241991 0 4500 WASHINGTON GROUP INTL INC COM NEW 938862208 280 4765 SH SOLE 4765 0 0 WASHINGTON MUT INC COM 939322103 5225 120197 SH SOLE 120097 0 100 WATCHGUARD TECHNOLOGIES INC COM 941105108 234 55100 SH SOLE 53300 0 1800 WAUSAU PAPER CORP COM 943315101 8186 606400 SH SOLE 604000 0 2400 WILLIAMS CLAYTON ENERGY INC COM 969490101 23293 768730 SH SOLE 737380 0 31350 WISCONSIN ENERGY CORP COM 976657106 1025 23750 SH SOLE 23750 0 0 WPS RESOURCES CORP COM 92931B106 9175 184875 SH SOLE 184675 0 200 WRIGHT MED GROUP INC COM 98235T107 7712 318025 SH SOLE 318025 0 0 WYETH COM 983024100 7528 148079 SH SOLE 147979 0 100 ZAREBA SYSTEMS INC COM 989131107 1208 228000 SH SOLE 228000 0 0 ZIX CORP COM 98974P100 1139 1837500 SH SOLE 1837500 0 0 TOTAL 2261896 214833248 TOTAL ENTRIES 321