I would now turn the call over to Tom Gurnee, our Chief Financial Officer
Thank you Chairman. Let me start this call by saying how pleased we are that we were able to exceed the $100 million net profit milestone for the year 2011. This resulted in earnings per ADS more than doubling from $0.66 per ADS in 2010 to $1.36 per ADS in 2011. We believe that growing revenue by 53% and doubling our profits while adding a 182 million in cash in a period of government policy overhang was a very major accomplishment. My thanks go out to all of our employees and contractors for fine performance in 2011.
Now that we have congratulated ourselves, let’s examine the results for the fourth quarter 2011 and outlook for 2012. In the fourth quarter of 2011 our quarterly financial performance was strong once again. With revenue and net income achieving the high end of previous guidance and contract sales falling slightly short despite market headwind. Contract sales were 172 million in the quarter did fall 33% from the 257 million achieved in the previous quarter. We have largely but not fully anticipated the sequential decrease in our guidance for the first quarter as we projected contract sales of 180 to 200 million.
However we experienced an unexpected 38% sequential month-on-month drop in demand in November which is followed by an equally abrupt 38% sequential increase in December. This in turn was followed by another sharp drop in January and a sharp increase in February. Needless to say it’s difficult to establish a pattern here. Since the fluctuations have been surprisingly consistent across all projects, we believe we are experiencing the long term effects of broad government policy initiatives and those effects are negative or so we have assumed in our projections.