Revenues for the year ended December 31, 2011 were $88.6 million, a 78.3% increase compared $49.7 million in 2010.
Gross profit for the year was $39.5 million, representing 44.6% of revenues, compared with $18.3 million, representing 36.8% of revenues in 2010.
Operating profit for 2011 was $9.8 million, representing 11.1% of revenues, compared with an operating loss of $4.7 million in 2010.
Financial income in 2011 amounted to $756,000 compared to financial expenses of $967,000 in 2010.Tax expenses in 2011 were $723,000 compared with $602,000 in 2010. Net income for 2011 was $9.8 million, compared with a net loss of $6.2 million in 2010. Earnings per share for the year ended December 31, 2011 was $0.78, compared with a net loss per share of $0.60 in 2010. Cash and short term deposits net of current bank debt, as of December 31, 2011, were $32.5 million, or $2.06 per share, compared with net cash and equivalents of $9.5 million, or $0.91 per share, on December 31, 2010. As of December 31, 2011, the Company's backlog was $50.1 million, compared with $50.2 million on December 31, 2010. MANAGEMENT COMMENT Commenting on the results, Mr. Eitan Livneh, President and CEO of Magal, said, "I am very proud of our 2011 results, which reflect strong improvement across all financial parameters. We achieved an all-time record in revenues and net income, generating significant positive operating cash flow of $20.4 million." Continued Mr. Livneh, "Our success is the result of the strenuous efforts we have made over the past two years in transitioning Magal into a leader in delivering full-scale homeland security projects. Our two-pronged strategy is to strengthen and build on our market leadership in PIDS products, while at the same time establishing a strong local presence in various key geographic areas. A recent example of this strategy can be found in our announcement concerning our new joint venture in India. Our now exceptionally strong balance sheet, with $32.5 million in net cash, opens many new growth avenues for us enabling both organic investments and synergistic acquisitions." Mr. Jacob Perry, Chairman of the Board of Magal added, "I would like to congratulate the management team as well as all the employees at Magal on a highly successful and profitable year. Magal has built a strong brand and reputation in the developing regions of Africa, Latin America and Asia. The successful conclusion of projects in those regions places Magal in a strong position to compete for large projects and opportunities, and we look forward to continued success in the future." INVESTORS' CONFERENCE CALL INFORMATION