For the year, sales to North America, which had the strongest regional growth, were up $31.6 million to $90.0 million. Sales to Europe were up $30.4 million, or 41%, while sales to Asia & Other grew $22.6 million to $146.7 million. Included in sales to Asia & Other in 2010 and 2011 were approximately $29 million and $15 million, respectively, related to the orders from a China-based supplier to the consumer electronics industry. The Company believes that its geographic diversity helps to offset economic impacts that can vary from region to region around the world.Approximately 23% of sales in both the fourth quarter and full year 2011 were from parts and service, which is representative of the typical mix of machine tools and repair parts/service given the large installed base of Hardinge brands around the world. Fluctuations in Hardinge’s sales in total and among geographic locations and industries can vary from quarter-to-quarter based on the timing and magnitude of orders and projects. Hardinge does not believe that such quarter-to-quarter fluctuations are indicative of business trends, which the Company believes are more apparent on a trailing twelve-month basis. Leverage Realized on Higher Sales Gross profit was $23.1 million, or 25.4% of sales, in the 2011 fourth quarter compared with $19.7 million, or 24.1% of sales, in the same period of the prior year. When compared with the 2011 third quarter gross margin of 28.3%, gross margin was negatively impacted approximately 120 basis points as a result of year-end inventory adjustments and an additional 110 basis points due to product and geographic mix. For the year, gross profit in 2011 was $91 million, or 26.6% of sales, compared with $61.3 million, or 23.8% of sales, in the prior fiscal year as a result of the leverage gained on higher sales volume.