I would now like to introduce Mr. Dick Southworth, President and Chief Executive Officer of Spectrum Control.Dick Southworth Welcome to Spectrum Control's 2010 fourth quarter and fiscal yearend conference call. I'll briefly review some key operating and financial highlights for the period, after which Jack Freeman will review our financial performance in more detail. We will then be happy to take any questions. For the fourth quarter of 2010, we reported net income of $3.3 million or $0.25 per share on sales of $42.7 million. For the comparable period of 2009, we had net income of $2.1 million or $0.17 per share on sales of $34.1 million. For fiscal 2010, we generated net income of $12.8 million or $1 per share, $0.98 diluted, on sales of $163.9 million. For the year 2009, we had net income of $8.6 million or $0.68 per share, $0.67 diluted, on sales of $132.3 million. So we are very proud of our performance for the full year of 2010. Compared to a year ago, our 2010 annual revenue grew 24% and our net income and the earnings per share each increased by 50%. For the full year of 2010, customer orders totaled $162 million, an increase of almost $30 million over 2009, or 23%. For the year of 2010, our book-to-bill ratio was a solid 0.99 to 1. This current year performance reflects the continued success of our strategic plans that supplement ongoing organic growth with targeted business acquisitions. During 2010, we consummated and integrated three business acquisitions, each bringing new technologies and product capabilities to our company. We optimistically look forward to 2011 as we strive to build upon our 2010 achievements. So these are just some of the highlights and accomplishments of 2010. At this point, I'd like to introduce Jack Freeman, our Chief Financial Officer and ask Jack to review our fourth quarter and year end results in greater detail. When Jack has completed his presentation, I will fill with some final comments and we will open the floor to questions at that time. Jack.
Jack FreemanThanks, Dick. On October 29 of 2010, we acquired all of the outstanding stock of Summit Instruments. Based in Akron, Ohio, Summit designs and manufactures custom inertia sensors, accelerometers, inertial measurement systems, and related products and assemblies. These complex products complement and expand our existing sensors and control product offerings, consisting of precision position sensors and advanced thermal products. Currently, about 80% of Summit's revenues are generated from military and defense applications, including our various missile defense systems. Summit products are also used in numerous commercial applications, such as wind turbines and test and measurement equipment. During the fourth quarter of fiscal 2010, we successfully integrated the acquired operations with our existing Sensors and Controls Business, with Summit generating over $700,000 of product sales, which were immediately accretive to our consolidated earnings. In the fourth quarter of fiscal 2010, our consolidated sales in total were $42.7 million, an increase of $8.6 million or 25% from the same period last year, in addition to the $6.3 million aggregate impact of our recent acquisitions consisting of Micro Networks in November of 2009, Sage Labs in June of 2010 and now Summit Instruments late in October of 2010. Our consolidated sales were $2.3 million or 7% compared to the fourth quarter a year ago, excluding those acquisitions. This organic sales growth, we think reflects the overall improvement in our commercial market conditions, as well as the impact of our new products that we sell into these commercial markets. In the current fourth quarter, sales of our Advanced Specialty Products were $13.6 million, that's up $2.7 million or about 20% for the same period last year. Excluding the impact of our acquisition of Summit Instruments, sales of our Sensors and Controls increased about $700,000 or 15% from a year ago. For Advanced Specialty Products and our Sensors and Controls, shipments to customers and virtually all of our key commercial markets were up from the comparable period of last year. Read the rest of this transcript for free on seekingalpha.com