UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANYInvestment Company Act file number: 811-08030
Name of Fund: Royce Micro-Cap Trust, Inc.
Fund Address: 1414 Avenue of the Americas
New York, NY 10019Name and address of agent for service:
John E. Denneen, Esq.
Royce & Associates, LLC
1414 Avenue of the Americas
New York, NY 10019Registrants telephone number, including area code: (212) 486-1445
Date of fiscal year end: 12/31/2006
Date of reporting period: 3/31/2006
Item 1 - Schedule of Investments
ROYCE MICRO-CAP TRUST SCHEDULE OF INVESTMENTS MARCH 31, 2006 (UNAUDITED) COMMON STOCKS - 101.0% SHARES VALUE Consumer Products - 5.2% Apparel and Shoes - 2.1%
Portfolio of InvestmentsDelta Apparel
129,300 $ 2,292,489Hartmarx Corporation a,c
50,000 445,500Kleinerts a,d
14,200 0Steven Madden a
14,500 514,750Marisa Christina a,c
76,600 39,832Shoe Pavilion a,c
113,700 1,008,519Stride Rite
10,000 144,800Weyco Group
120,000 2,700,000
7,145,890
Collectibles - 0.4%Topps Company (The)
148,500 1,302,345
Food/Beverage/Tobacco - 0.3%Green Mountain Coffee Roasters a,c
26,600 1,056,552Nutrition 21 a,c
40,000 86,000
1,142,552
Home Furnishing and Appliances - 0.5%Lifetime Brands
52,554 1,481,497Stanley Furniture Company
5,000 146,250
1,627,747
Publishing - 0.1%Educational Development a
10,600 85,330
Sports and Recreation - 0.6%Monaco Coach
73,900 990,260National R.V. Holdings a
31,800 203,520Orange 21 a
7,400 32,930Sturm, Ruger & Company a
95,000 758,100
1,984,810
Other Consumer Products - 1.2%Burnham Holdings Cl. A
79,500 1,661,550Cobra Electronics a
10,000 105,900Cross (A. T.) Company Cl. A a
100,000 575,000JAKKS Pacific a
25,000 668,500Lazare Kaplan International a
151,700 1,183,260Sonic Solutions a
4,000 72,440
4,266,650
Total 17,555,324
Consumer Services - 6.1% Direct Marketing - 0.2%FTD Group a
55,000 532,950Sportsmans Guide (The) a
6,000 158,940ValueVision Media Cl. A a,c
5,000 63,900
755,790
Leisure and Entertainment - 0.3%FortuNet a,c
7,500 107,625IMAX Corporation a,c
25,000 253,750Multimedia Games a,c
5,000 74,400New Frontier Media a
60,000 455,400Progressive Gaming International a,c
9,500 90,915Singing Machine Company (The) a,c
5,000 1,600TiVo a,c
20,000 144,600
1,128,290
Media and Broadcasting - 0.5%Nelson (Thomas)
28,300 827,775Outdoor Channel Holdings a,c
69,750 710,753
1,538,528
Restaurants and Lodgings - 0.1%Benihana Cl. A a
800 24,736California Pizza Kitchen a,c
2,100 68,145Champps Entertainment a
10,000 82,500
175,381
Retail Stores - 4.6%A.C. Moore Arts & Crafts a,c
47,600 875,840Americas Car-Mart a,c
113,000 2,429,500Buckle (The)
25,500 1,044,225Cache a
3,200 58,688Casual Male Retail Group a
2,000 19,480Cato Corporation Cl. A
71,850 1,714,341Charlotte Russe Holding a
1,700 36,380Cost Plus a,c
36,977 632,307Deb Shops
19,900 591,030Freds Cl. A a
7,500 99,450La Senza Corporation a
99,900 1,740,776PriceSmart a,c
50,000 398,500Shoe Carnival a
11,000 274,780Stein Mart
148,900 2,593,838United Retail Group a,c
60,600 1,135,038West Marine a
127,000 1,906,270Wild Oats Markets a,c
3,000 60,990
15,611,433
Other Consumer Services - 0.4%Ambassadors Group
15,000 381,000Ambassadors International
6,100 110,776Autobytel a,c
20,000 96,400Cash America International
5,000 150,100Escala Group a,c
26,000 680,940
1,419,216
Total 20,628,638
Diversified Investment Companies - 2.0% Closed-End Mutual Funds - 2.0%ASA Bermuda a
73,300 4,764,500Central Fund of Canada Cl. A a
237,000 1,884,150
Total 6,648,650
Financial Intermediaries - 6.5% Banking - 2.7%Abigail Adams National Bancorp b
229,400 2,993,670Arrow Financial
14,322 392,423Bancorp (The) a
51,380 1,261,379First National Lincoln
40,200 705,510FirstBank NW
9,860 181,325Lakeland Financial
22,500 1,051,875Meta Financial Group
44,800 1,022,784Queen City Investments a
948 808,644Quest Capital a
30,000 77,322Sterling Bancorp
22,869 471,101
8,966,033
Insurance - 2.4%American Safety Insurance Holdings a
20,000 334,200First Acceptance a
258,405 3,436,786Independence Holding
33,534 773,294NYMAGIC
65,400 1,950,882Navigators Group a
17,200 853,120Wellington Underwriting
444,712 834,454
8,182,736
Real Estate Investment Trusts - 0.3%Bimini Mortgage Management Cl. A
99,000 847,440
Securities Brokers - 0.6%First Albany a
45,000 253,350Sanders Morris Harris Group
21,000 336,840Stifel Financial a,c
21,233 927,245Tradestation Group a,c
30,000 414,600
1,932,035
Other Financial Intermediaries - 0.5%Electronic Clearing House a
20,000 255,000MarketAxess Holdings a,c
123,700 1,488,111
1,743,111
Total 21,671,355
Financial Services - 3.2% Insurance Brokers - 0.1%Crawford & Company Cl. A
50,000 290,500
Investment Management - 3.0%ADDENDA Capital
48,000 1,185,769Brantley Capital a
56,100 126,225Epoch Holding a
218,300 1,047,840Hennessy Advisors
16,500 445,500Highbury Financial a
317,200 1,741,428Highbury Financial a
634,400 399,672International Assets Holding a
169,000 1,732,250MVC Capital a
211,200 2,576,640NGP Capital Resources Company
58,600 796,960Rockwater Capital a
50,000 267,586
10,319,870
Other Financial Services - 0.1%Clark
20,900 246,829MicroFinancial
10,000 38,000
284,829
Total 10,895,199
Health - 14.5% Commercial Services - 1.7%Discovery Partners International a
35,000 85,050First Consulting Group a
274,700 2,030,033Hooper Holmes a,c
88,600 256,054PAREXEL International a,c
121,400 3,209,816
5,580,953
Drugs and Biotech - 5.2%Allos Therapeutics a,c
233,600 819,936Alnylam Pharmaceuticals a,c
3,000 52,770Anormed a
160,600 1,059,960Antigenics a,c
70,000 191,800Aradigm Corporation a,c
7,040 24,288Axonyx a
50,000 58,000Barrier Therapeutics a,c
11,300 109,384Cambrex Corporation
16,000 312,640CancerVax Corporation a,c
43,000 121,690Caraco Pharmaceutical Laboratories a,c
119,750 1,556,750Cardiome Pharma a
29,300 372,110Cell Genesys a,c
58,000 462,840Cerus Corporation a
82,000 701,920CollaGenex Pharmaceuticals a,c
25,000 370,000Corcept Therapeutics a,c
5,000 26,150Dendreon Corporation a,c
12,700 59,817Draxis Health a
15,000 67,950Durect Corporation a
44,100 280,476DUSA Pharmaceuticals a,c
32,700 230,862Dyax Corporation a
15,000 87,000Emisphere Technologies a,c
163,200 1,341,504Gene Logic a
240,579 1,104,258Genitope Corporation a,c
3,000 26,100Halozyme Therapeutics a,c
20,000 69,000Hi-Tech Pharmacal a
30,600 862,920ImmunoGen a,c
44,000 190,960Lannett Company a,c
64,000 481,920Mannkind Corporation a,c
42,000 858,480Maxygen a
5,000 41,400Momenta Pharmaceuticals a,c
62,500 1,228,750Monogram Biosciences a,c
55,000 101,200Myriad Genetics a,c
25,000 652,250Nabi Biopharmaceuticals a,c
5,000 28,200Nastech Pharmaceutical Company a,c
2,700 48,600Neurogen Corporation a,c
30,000 185,700Oncolytics Biotech a,c
41,000 211,560Orchid Cellmark a,c
78,000 447,720Pharmacyclics a
98,000 450,800SFBC International a,c
25,000 609,500Sangamo BioSciences a
10,000 59,500Senesco Technologies a
25,000 53,500Tercica a,c
61,900 414,730Theragenics Corporation a,c
145,800 460,728Trimeris a,c
30,000 405,300
17,300,923
Health Services - 1.8%ATC Healthcare Cl. A a
35,000 14,350Albany Molecular Research a
40,000 406,400Bio-Imaging Technologies a
42,400 180,200BioScrip a,c
59,700 430,437Covalent Group a
25,000 56,250Gentiva Health Services a
23,000 418,830HMS Holdings a
74,910 655,463Healthcare Services Group
2,800 59,808Horizon Health a
50,000 990,000MedCath Corporation a,c
18,000 344,160Mediware Information Systems a
55,000 550,000On Assignment a
41,100 451,278Quovadx a
5,000 15,950RehabCare Group a,c
22,000 414,700Res-Care a
32,000 588,160Sun Healthcare Group a
51,000 384,540U.S. Physical Therapy a
10,000 171,100
6,131,626
Medical Products and Devices - 5.6%Adeza Biomedical a
21,400 452,182Allied Healthcare Products a
253,500 1,526,070AngioDynamics a,c
14,000 420,840Anika Therapeutics a
24,000 293,280Bruker BioSciences a,c
187,200 1,010,880Caliper Life Sciences a
52,100 333,440Cardiac Science a
29,947 273,416CONMED Corporation a,c
3,900 74,685Del Global Technologies a
168,279 496,423EPIX Pharmaceuticals a,c
49,000 171,500Endologix a,c
10,500 49,875Exactech a,c
114,100 1,595,118Kensey Nash a,c
28,000 800,800Langer a
7,100 31,595Medical Action Industries a
83,500 2,003,165Merit Medical Systems a
5,700 68,457Molecular Devices a,c
25,500 845,580NMT Medical a
8,200 132,676Neurometrix a,c
21,500 837,210Orthofix International a
28,000 1,114,960OrthoLogic Corporation a
84,000 184,800PLC Systems a
105,200 76,796Possis Medical a,c
29,900 303,784Schick Technologies a
25,000 1,247,500Shamir Optical Industry a
7,500 74,850STAAR Surgical a
5,000 44,850Synovis Life Technologies a,c
23,000 235,520Urologix a,c
177,000 628,350Utah Medical Products
42,300 1,353,600Young Innovations
61,450 2,244,154
18,926,356
Personal Care - 0.2%CCA Industries
9,040 101,248Helen of Troy a,c
20,000 424,000Nutraceutical International a
15,000 226,050
751,298
Total 48,691,156
Industrial Products - 15.4% Automotive - 0.9%IMPCO Technologies a,c
30,500 198,860LKQ Corporation a,c
11,400 237,234Noble International
37,500 634,875Safety Components International a
28,300 403,275Spartan Motors a
2,800 32,200Strattec Security a
28,300 1,055,307Wescast Industries Cl. A
37,900 503,667
3,065,418
Building Systems and Components - 1.4%Aaon a
63,700 1,523,067AZZ a
45,600 1,121,760Craftmade International
20,000 369,800Flanders Corporation a,c
39,400 460,192LSI Industries
63,812 1,087,356Modtech Holdings a
3,800 33,250Southern Energy Homes a
11,600 69,136
4,664,561
Construction Materials - 1.5%Ash Grove Cement Company a
8,000 1,424,000Monarch Cement
50,410 1,310,660Synalloy Corporation a
161,000 2,413,390
5,148,050
Industrial Components - 1.6%American Superconducter a,c
67,000 760,450Bel Fuse Cl. A
55,200 1,556,088C & D Technologies a
53,000 489,720Ladish Company a
10,000 289,700Plug Power a,c
1,370 6,850Powell Industries a
50,300 1,095,534Scientific Technologies a
10,700 82,390Tech/Ops Sevcon
76,200 487,680II-VI a
20,000 361,800Woodhead Industries
10,000 166,000
5,296,212
Machinery - 3.4%Alamo Group
38,600 854,604Ampco-Pittsburgh
86,900 1,738,000Astec Industries a,c
40,200 1,443,180Global Power Equipment Group a,c
87,600 337,260Gorman-Rupp Company
3,375 82,350Hardinge
117,000 1,882,530Hurco Companies a,c
25,300 688,666Keithley Instruments
14,000 215,040LeCroy Corporation a
2,000 31,300Lindsay Manufacturing
10,000 270,900MTS Systems
10,000 418,300Mueller (Paul) Company
9,650 323,757Sun Hydraulics
38,950 832,751Tennant Company
44,100 2,307,312
11,425,950
Metal Fabrication and Distribution - 2.2%Aleris International a
4,075 195,885Encore Wire a,c
15,000 508,200Harris Steel Group
50,000 1,177,377Haynes International a
42,750 1,282,500Insteel Industries
16,800 953,904NN a
155,600 2,008,796Novamerican Steel a
2,500 114,875Universal Stainless & Alloy Products a
38,500 989,450
7,230,987
Paper and Packaging - 0.1%Mod-Pac Corporation a
23,200 269,120
Pumps, Valves and Bearings - 0.2%CIRCOR International
28,000 817,600
Specialty Chemicals and Materials - 2.0%Aceto Corporation a
365,419 2,693,138American Vanguard
2,500 76,375Balchem Corporation a
22,500 519,075CFC International a,c
40,600 673,249Hawkins
122,667 1,725,925NuCo2 a
20,000 634,800Park Electrochemical
10,000 295,000
6,617,562
Textiles - 0.1%Unifi a,c
100,000 334,000
Other Industrial Products - 2.0%Color Kinetics a,c
50,000 1,059,000Distributed Energy Systems a
50,000 355,000Eastern Company (The)
26,500 555,175Maxwell Technologies a
15,300 298,503Peerless Manufacturing a
42,200 822,900Quixote Corporation a
35,500 878,625Raven Industries
73,000 2,855,030
6,824,233
Total 51,693,693
Industrial Services - 12.7% Advertising and Publishing - 0.5%Greenfield Online a,c
20,000 119,800MDC Partners Cl. A a
84,000 716,520NetRatings a,c
50,000 662,500
1,498,820
Commercial Services - 5.4%American Bank Note Holographics a
242,200 690,270BB Holdings a
390,000 1,794,000CBIZ a,c
87,000 696,000Carlisle Group a
151,000 299,076Castle (A.M.) & Company
19,500 575,250Collectors Universe a,c
11,700 163,683CorVel Corporation a,c
31,850 701,337Exponent a
68,300 2,161,695Geo Group (The) a,c
51,200 1,707,008iGATE Corporation a
273,400 1,613,060Kforce a,c
55,000 701,250NCO Group a,c
20,000 475,000PDI a
15,200 177,384RCM Technologies a
95,100 614,346Renaissance Learning
2,365 42,570SM&A a,c
31,300 203,450Senomyx a,c
47,000 773,620SITEL Corporation a,c
90,000 378,000StarTek
17,000 400,520TRC Companies a,c
54,200 733,326Volt Information Sciences a,c
64,100 1,958,896Westaff a
362,500 1,402,875
18,262,616
Engineering and Construction - 1.2%Comfort Systems USA
21,000 283,500Devcon International a
21,700 217,000Insituform Technologies Cl. A a,c
75,300 2,002,980Nobility Homes
2,000 49,520Skyline Corporation
32,100 1,328,298
3,881,298
Food and Tobacco Processors - 1.2%Cal-Maine Foods
50,000 363,500Galaxy Nutritional Foods a
176,200 160,342ML Macadamia Orchards L.P.
120,200 706,776Omega Protein a,c
9,600 54,816Seneca Foods Cl. A a
62,500 1,228,125Seneca Foods Cl. B a
42,500 835,125Sunopta a,c
77,300 665,553
4,014,237
Industrial Distribution - 0.9%Central Steel & Wire a
2,437 1,493,881Elamex a
60,200 66,822Lawson Products a
19,500 798,330Strategic Distribution a
59,690 537,807
2,896,840
Printing - 1.0%Bowne & Co.
66,500 1,108,555Champion Industries
23,500 146,640Courier Corporation
22,950 1,017,603Ennis
9,700 189,150Schawk
38,900 1,011,789
3,473,737
Transportation and Logistics - 2.2%Forward Air
50,700 1,890,603Frozen Food Express Industries a
92,000 961,400MAIR Holdings a,c
8,600 40,248Marten Transport a,c
4,050 73,265Pacific CMA a,c
200,000 158,000Patriot Transportation Holding a
11,200 761,824Universal Truckload Services a
134,200 3,361,710Vitran Corporation Cl. A a,c
8,000 160,560
7,407,610
Other Industrial Services - 0.3%Landauer
21,300 1,069,686Team a
2,200 73,172
1,142,858
Total 42,578,016
Natural Resources - 9.6% Energy Services - 4.2%Calfrac Well Services a
1,000 29,122Carbo Ceramics
18,750 1,067,062Conrad Industries a
154,000 392,700Dawson Geophysical a
2,400 66,240Dril-Quip a
47,500 3,365,375Enerflex Systems
3,700 88,425Gulf Island Fabrication
45,400 1,074,618GulfMark Offshore a
65,200 1,812,560Input/Output a
43,500 422,385Pason Systems a
111,200 2,978,410StealthGas
4,900 68,110TGC Industries a
11,600 126,904Valley National Gases a
30,100 644,441Willbros Group a,c
88,800 1,806,192
13,942,544
Oil and Gas - 2.0%Bonavista Energy Trust
69,700 2,223,166CE Franklin a
65,750 986,250Cano Petroleum a
39,400 315,200Contango Oil & Gas Company a,c
10,000 129,500Edge Petroleum a,c
2,000 49,960Exploration Company of Delaware a,c
5,500 61,820Nuvista Energy a
121,000 1,533,416Particle Drilling Technologies a
6,200 33,232PetroCorp a,d
104,200 0Pioneer Drilling Company a
7,500 123,225Savanna Energy Services a
2,500 59,939Storm Cat Energy a,c
232,800 693,744VAALCO Energy a,c
65,900 441,530
6,650,982
Precious Metals and Mining - 2.2%Apex Silver Mines a
76,100 1,807,375Aurizon Mines a
237,000 552,210Brush Engineered Materials a
15,500 306,125Cumberland Resources a
250,000 1,017,500Gammon Lake Resources a
11,600 209,960Gold Reserve a
16,000 94,560Golden Star Resources a
168,100 536,239Metallica Resources a
281,300 925,477Minefinders Corporation a
116,000 895,520Nevsun Resources a
5,000 10,402Northern Orion Resources a
52,400 236,848Northgate Minerals a
270,000 650,700NovaGold Resources a
13,400 205,020Spur Ventures a
30,000 33,908
7,481,844
Real Estate - 0.3%HomeFed Corporation
11,352 726,528Kennedy-Wilson a
21,500 363,350
1,089,878
Other Natural Resources - 0.9%PICO Holdings a
55,700 1,831,973Pope Resources L.P.
33,000 1,097,250
2,929,223
Total 32,094,471
Technology - 23.2% Aerospace and Defense - 2.9%Allied Defense Group (The) a,c
76,800 1,685,760Astronics Corporation a
26,400 356,136Axsys Technologies a,c
5,000 85,250Ducommun a
72,100 1,600,620HEICO Corporation
41,600 1,318,304HEICO Corporation Cl. A
24,160 657,877Herley Industries a,c
81,000 1,691,280Integral Systems
57,500 1,551,925SIFCO Industries a
45,800 215,260TVI Corporation a
165,720 654,594
9,817,006
Components and Systems - 4.1%Acacia Research-Acacia Technologies a,c
92,700 817,614Advanced Photonix Cl. A a
117,900 318,330CSP a
122,581 777,164DDi Corporation a,c
52,147 419,262Dalsa Corporation a
5,000 56,771Dot Hill Systems a
2,000 14,200Excel Technology a
92,900 2,737,763Giga-tronics a
3,200 8,320Hypercom Corporation a
74,700 694,710InFocus Corporation a
97,300 462,175International DisplayWorks a,c
89,600 586,880Merix Corporation a
7,000 86,100Metrologic Instruments a,c
2,900 67,077Mobility Electronics a,c
1,000 8,330MOCON
15,600 140,712Neoware Systems a,c
2,600 77,012Performance Technologies a
124,550 934,125Richardson Electronics
202,100 1,899,740Rimage Corporation a,c
20,000 451,600SimpleTech a
204,100 767,416TTM Technologies a,c
121,900 1,766,331TransAct Technologies a
78,600 742,770Zomax a,c
20,000 36,800
13,871,202
Distribution - 0.6%Agilysys
90,000 1,355,400Bell Industries a
85,700 229,676Jaco Electronics a
30,900 117,420Nu Horizons Electronics a,c
40,000 340,400PC Mall a,c
6,000 38,280Pomeroy IT Solutions a
6,900 57,684
2,138,860
Internet Software and Services - 1.2%Answers Corporation a,c
4,100 49,241CryptoLogic
19,900 513,221Digitas a,c
88,840 1,279,296EDGAR Online a,c
38,700 198,144Inforte Corporation a
11,400 49,932LookSmart a
4,000 21,520MIVA a
10,000 40,800NIC a,c
26,800 164,284Packeteer a,c
8,000 92,800PFSweb a,c
7,242 8,908Stamps.com a
21,200 747,512Stellent c
15,000 177,900Varsity Group a,c
118,400 509,120
3,852,678
IT Services - 5.6%CIBER a,c
182,662 1,165,384Cogent Communications Group a,c
32,500 316,875Computer Task Group a,c
381,100 1,619,675Covansys Corporation a,c
172,500 2,965,275DiamondCluster International a,c
138,100 1,477,670Forrester Research a,c
105,500 2,354,760Rainmaker Systems a
2,000 8,640Sapient Corporation a,c
500,000 3,815,000Syntel
54,300 1,027,356TechTeam Global a
58,100 646,653Tier Technologies Cl. B a
6,800 54,740TriZetto Group (The) a,c
182,300 3,206,657
18,658,685
Semiconductors and Equipment - 2.3%Advanced Energy Industries a,c
23,000 324,990California Micro Devices a
16,700 132,097Cascade Microtech a,c
48,000 624,480Catalyst Semiconductor a
89,700 439,530ESS Technology a,c
25,000 83,000Electroglas a,c
281,700 1,532,448Exar Corporation a
41,208 588,450Integrated Silicon Solution a
15,000 99,600Intevac a,c
40,550 1,167,029IXYS Corporation a
46,700 430,574Jinpan International
57,050 471,803MIPS Technologies a,c
10,000 74,600PDF Solutions a,c
29,000 548,680Photronics a,c
29,750 558,110QuickLogic Corporation a
20,000 114,800Semitool a,c
25,500 289,935Sigmatel a,c
30,000 262,200White Electronic Designs a
10,000 58,600
7,800,926
Software - 4.1%Aladdin Knowledge Systems a
27,300 612,885Altiris a
3,500 77,035Applix a
20,000 152,600Descartes Systems Group (The) a
56,500 213,005Evans & Sutherland Computer a
66,800 428,856Fundtech a
55,000 628,650ILOG ADR a
35,000 537,950Indus International a,c
19,200 69,888InterVideo a,c
24,500 266,070iPass a,c
190,000 1,521,900JDA Software Group a,c
59,500 859,180Majesco Entertainment Company a
2,500 3,450MapInfo a,c
5,000 70,100McDATA Corporation Cl. A a,c
18,199 84,079MetaSolv a
5,800 17,748Moldflow Corporation a
7,500 117,750MIND C.T.I.
20,000 62,200Peerless Systems a
50,000 373,500Pegasystems a
320,200 2,612,832Phase Forward a,c
43,000 479,020SPSS a
41,800 1,323,388SeaChange International a,c
5,000 38,850TeleCommunication Systems Cl. A a,c
10,000 25,600Transaction Systems Architects Cl. A a
100,100 3,124,121Unica Corporation a,c
3,000 34,770
13,735,427
Telecommunications - 2.4%Anaren a
24,300 473,121C-COR.net a
5,000 43,700Captaris a
67,800 313,914Catapult Communications a
5,000 66,500Centillium Communications a
11,000 42,130Channell Commercial a
96,035 480,175Communications Systems
79,500 838,725Comtech Group a,c
34,500 345,000Intervoice a,c
2,900 24,969North Pittsburgh Systems
15,700 366,438Novatel Wireless a,c
9,400 84,130PC-Tel a
49,600 472,192Radyne ComStream a
41,700 665,949SpectraLink Corporation a
57,000 715,350Symmetricom a,c
24,782 211,886UCN a
100,000 245,000ViaSat a,c
91,812 2,630,414
8,019,593
Total 77,894,377
Miscellaneous e- 2.6% Total 8,676,752
TOTAL COMMON STOCKS(Cost $208,262,745)
339,027,631
PREFERRED STOCK - 0.4%Seneca Foods Conv. a
75,409 1,406,378
TOTAL PREFERRED STOCK(Cost $943,607)
1,406,378
REPURCHASE AGREEMENTS - 16.5%State Street Bank & Trust Company, 4.60% dated 3/31/06, due 4/3/06, maturity value $35,559,626 (collateralized by
obligations of various U.S. Government Agencies, valued at $36,435,488)(Cost $35,546,000)
35,546,000
Lehman Brothers (Tri-Party), 4.73% dated 3/31/06, due 4/3/06, maturity value $20,007,883 (collateralized by
obligations of various U.S. Government Agencies, valued at $20,410,990)(Cost $20,000,000)
20,000,000
TOTAL REPURCHASE AGREEMENTS(Cost $55,546,000)
55,546,000
COLLATERAL RECEIVED FOR SECURITIES LOANED - 10.4% Money Market FundsState Street Navigator Securities Lending Prime Portfolio (7 day yield-4.6423%)
(Cost $34,778,010)
34,778,010
TOTAL INVESTMENTS - 128.3%(Cost $299,530,362)
430,758,019 LIABILITIES LESS CASH AND OTHER ASSETS - (10.4)% (35,130,512 ) PREFERRED STOCK - (17.9)% (60,000,000 )
NET ASSETS APPLICABLE TO COMMON STOCKHOLDERS - 100.0% $ 335,627,507
a Non-income producing. b At March 31, 2006, the Fund owned 5% or more of the Companys outstanding voting securities thereby making the Company an Affiliated Company as that term is defined in the Investment Company Act of 1940. The Fund effected the following transactions in shares of such companies during the period ended March 31, 2006:
Shares Market Value Cost of Cost of Realized Dividend Shares Market Value Affiliated Company 12/31/05 12/31/05 Purchases Sales Gain (Loss) Income 3/31/06 3/31/06
Abigail Adams
244,400 $3,421,624 - $240,000 $(44,481 ) $30,550 229,400 $2,993,670
National Bancorp
$3,421,624 - $240,000 $(44,481 ) $30,550 $2,993,670
c A portion of these securities were on loan at March 31, 2006. Total market value of loaned securities at March 31, 2006 was $33,804,189. d Securities for which market quotations are no longer readily available represent 0.00% of net assets. These securities have been valued at their fair value under procedures established by the Funds Board of Directors. e Includes securities first acquired in 2006 and less than 1% of net assets applicable to Common Stockholders.INCOME TAX INFORMATION: The cost of total investments for Federal income tax purposes was $300,291,203. At March 31, 2006, net unrealized appreciation for all securities was $130,466,816, consisting of aggregate gross unrealized appreciation of $138,262,461 and aggregate gross unrealized depreciation of $7,795,645. The primary differences in book and tax basis cost is the timing of the recognition of losses on securities sold for book and tax purposes.
Valuation of investments: Investment transactions are accounted for on the trade date. Securities are valued as of the close of trading on the New York Stock Exchange (generally 4:00 p.m. Eastern time) on the valuation date. Securities that trade on an exchange or Nasdaq, and securities traded on Nasdaqs Electronic Bulletin Board, are valued at their last reported sales price or Nasdaq official closing price taken from the primary market in which each security trades or, if no sale is reported for such day, at their bid price. Other over-the-counter securities for which market quotations are readily available are valued at their bid price. Securities for which market quotations are not readily available are valued at their fair value under procedures established by the Funds Board of Directors. Bonds and other fixed income securities may be valued by reference to other securities with comparable ratings, interest rates and maturities, using established independent pricing services. Investments in money market funds are valued at net asset value per share. Repurchase Agreements: The Fund may enter into repurchase agreements with institutions that the Funds investment adviser has determined are creditworthy. The Fund restricts repurchase agreements to maturities of no more than seven days. Securities pledged as collateral for repurchase agreements, which are held until maturity of the repurchase agreements, are marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest). Repurchase agreements could involve certain risks in the event of default or insolvency of the counter-party, including possible delays or restrictions upon the ability of the Fund to dispose of its underlying securities. Securities Lending: The Fund loans securities to qualified institutional investors for the purpose of realizing additional income. Collateral on all securities loaned for the Fund is accepted in cash and is invested temporarily by the custodian. The collateral is equal to at least 100% of the current market value of the loaned securities. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day.
Other information regarding the Fund is available in the Funds most recent Prospectus and Report to Shareholders. This information is available through The Royce Funds (www.roycefunds.com) and on the Securities and Exchange Commissions website (www.sec.gov).
Item 2 - Controls and Procedures
(a) The Registrant s principal executive and principal financial officers have concluded, based on their evaluation of the Registrants disclosure controls and procedures as of a date within 90 days of the filing date of this report (as required by Rule 30a-3(b) under the Investment Company Act of 1940 (the Act), that the Registrants disclosure controls and procedures (as defined by Rule 30a-3(c) under the Act) are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-Q is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-Q is accumulated and communicated to the Registrants management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. (b) There were no changes in the Registrants internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) during the Registrants last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the internal control over financial reporting.Item 3 - Exhibits
Certifications pursuant to Rule 30a-2(a) under the Act are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Royce Micro-Cap Trust, Inc.
By: /s/ Charles M. RoyceCharles M. Royce
President, Royce Micro-Cap Trust, Inc.
Date: May 16, 2006Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By: /s/ Charles M. Royce
Charles M. Royce
President, Royce Micro-Cap Trust, Inc.
Date: May 16, 2006By: /s/ John D. Diederich
John D. Diederich
Treasurer, Royce Micro-Cap Trust, Inc.
Date: May 16, 2006