"While our revenue was negatively affected this period due to some shipments being pushed out into the third quarter, we once again posted improved margins and ended the quarter with a solid backlog," said Daryl Wilson, President and Chief Executive Officer. "In addition, we successfully reduced our cash operating costs by nearly 70% – resulting in an operating loss of $1.4 million as compared with $5.7 million last year. We continue to see a rebound in our end markets and view the second half of 2010 as being an improvement, setting the stage for further growth in 2011."Results for the Second Quarter of 2010 Compared to the Second Quarter of 2009 Revenues decreased $2.7 million or 49%, primarily reflecting lower revenues in our OnSite Generation business unit, due to delays on the part of three of our OnSite Generation customers. These orders have an approximate sales value of $7.9 million and are currently expected to be delivered in the third quarter. This decrease was partially offset by increased revenues in our Power Systems business unit. Gross profit for the quarter, expressed as a percentage of revenues, was 30% (versus 16% in 2009), reflecting higher gross profit generated by the Power Systems business unit resulting from product mix and product cost reductions. This increase was partially offset by lower gross margins in the OnSite Generation business unit resulting from pricing pressure on orders booked in 2009 as well as lower cost synergies and less overhead absorption due to reduced revenues. Cash operating costs were $2.0 million for the quarter, a 68% decrease from $6.2 million in the second quarter of 2009. Cash operating costs for the three months ended June 30, 2010 reflect: (i) a $1.4 million decrease in selling, general and administrative expenses resulting from ongoing cost reduction initiatives; (ii) a $0.6 million increase in third party research and product development funding; and (iii) a $0.6 million decrease in research and product development expenditures resulting from standardization of product development and more focus on product cost reduction efforts.