Advertisement
For the fourth quarter of 2007, revenues increased 20.3% to $30.6 million,compared to revenues of $25.4 million for the fourth quarter of 2006. Grossprofit for the quarter was $17.4 million, or 56.7% of revenues, compared togross profit of $13.3 million, or 52.4% of revenues for the same period lastyear. The gross profit for the fourth quarter of 2007 was influenced, by amongother things, from a special grant received by one of our subsidiaries fromits local government. The impact of this grant on the Company's gross profitfor the fourth quarter of 2007 was approximately $0.6 million or 2% ofrevenues.
Advertisement
For the fourth quarter of 2007, operating income increased 112.9% to $2.7million, or 8.8% of revenues, compared to operating income of $1.3 million, or5% of revenues for the same period last year.
Net income for the fourth quarter increased 11.9% to $1.6 million or $0.09per diluted share, compared to net income of $1.4 million, or $0.08 perdiluted share, for the comparable period in 2006.
During this quarter we provided a valuation allowance on deferred taxassets related to our European subsidiaries. The impact of this valuationallowance on our tax expenses this quarter was an additional expense of $1.1million, while the impact on our net profit was $0.6 million.
Excluding the effects of non-cash stock-based compensation expenses forthe fourth quarter of 2007, operating income increased 88% to $3 million, or9.8% of revenues, compared to operating income of $1.6 million, or 6.2% ofrevenues, for the same period last year.
Excluding the effect of non-cash stock-based compensation expenses andvaluation allowance provided on deferred tax assets, net of minority interest,the net income for the quarter increased 41.2% to $2.4 million, compared to$1.7 million for the comparable period in 2006. The reconciliation of GAAP netincome to non-GAAP net income is set forth below.
For the year ended December 31, 2007, revenues increased 23.8% to $120.4million, compared to revenues of $97.3 million for the same period of 2006.Gross profit for the year increased 21.3% to $64.6 million, or 53.6% ofrevenues, compared to a gross profit of $53.2 million, or 54.7% of revenuesfor the same period last year.
For the year ended December 31, 2007, operating income increased 67.9% to$11.9 million, or 9.9% of revenues, compared to operating income of $7.1million, or 7.3% of revenues for the same period last year. Net income forthe year was $8.2 million or $0.50 per diluted share, an increase of 27.0%compared to net income of $6.5 million or $0.39 per diluted share for thecomparable period in 2006
For the year ended December 31, 2007, excluding the effects of non-cashstock-based compensation expenses, operating income was $12.9 million, or10.7% of revenues, compared to operating income of $8.5 million, or 8.8% ofrevenues, for the same period last year.
Excluding the effect of non-cash stock-based compensation expenses andvaluation allowance provided on deferred tax assets, net of minority interest,the net income for the year was $9.8 million, or 8.1% of revenues, an increaseof 24.3% from net income of $7.9 million, or 8.1% of revenues, for the sameperiod last year.
The reconciliation of GAAP operating income and net income to non-GAAPoperating income and non-GAAP net income is set forth below.
As of December 31, 2007, the Company had cash and cash equivalents,including short-term investments of $33.3 million.
Commenting on its fourth quarter results, Giora Ben-Ze'ev, Chief ExecutiveOfficer of Shamir, said,
