“Our fourth quarter gross profit came in lower than expected due to a combination of product mix and more of our overall revenue coming from international markets, where we experience lower gross profit margins because we sell primarily through distribution,” said Hawkins.

As of December 31, 2011, the Company had cash, cash equivalents, and short-term investments of $32.9 million, stockholders' equity of approximately $258 million, and working capital of approximately $90 million.

Financial Guidance

In commenting on the Company’s financial guidance for 2012, Hawkins said, “During 2011 and continuing into the current year we have been confronted with a new dynamic in our worldwide markets that makes it more difficult for us to accurately predict the timing of orders from our customers. For several quarters our revenue has been lower than anticipated, not because of business lost to others, but because customers have chosen to delay placing orders out of near-term budgetary caution. We have therefore decided to update our 2012 guidance and provide for a range of results during the year. Accordingly, our first quarter 2012 guidance is revenue of $55 million to $60 million, with a range of non-GAAP earnings per share of breakeven to $0.07. We are also widening our full year 2012 guidance to revenue of $256 million to $262 million and non-GAAP earnings per share of $0.57 to $0.62.”

“For the full year 2012, we look for solid earnings growth as we continue to execute on our strategy of organic growth and accretive acquisitions. We expect our profitability to improve throughout 2012 as we benefit from continued cost cutting measures and the integration of Embla into our operations. As a company, we are focused on driving profitability and operating margins back to historic levels. Our guidance reflects our goal of at least a 13% pretax operating margin on a non-GAAP basis in the fourth quarter,” added Hawkins.

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