This excerpt taken from the KAI 10-K filed Mar 16, 2005.
Interest Income and Expense
Interest income decreased to $1.0 million in 2003 from $2.6 million in 2002, primarily due to lower average invested balances as well as lower prevailing interest rates. The decrease in average invested balances resulted primarily from the use of cash to repurchase and redeem our subordinated convertible debentures in 2002, offset in part by cash generated from operating activities in 2003 and proceeds received from our June 2002 public stock offering.
Interest expense decreased to $49 thousand in 2003 from $4.7 million in 2002 as a result of the repurchases and redemption of our subordinated convertible debentures in 2002.