In addition, during this call, statements may include financial measures as defined as non-GAAP financial measures by the SEC, such as EBITDA. The presentation of financial information is not intended to be considered in isolation or as a substitute for financial information prepared and presented in accordance with GAAP. Management of Ormat Technology believes that adjusted EBITDA may provide meaningful supplemental information regarding liquidity measurements that both management and investors' benefit from referring to this non-GAAP financial measures in assessing Ormat Technologies' liquidity and when planning and forecasting future periods. This non-GAAP financial measure may also facilitate management's internal comparisons to the company's historical liquidity.Before I turn the call over to management, I would like to remind everyone that the slide presentation accompanying this call may be accessed on the company's website at ormat.com under the IR Event and Presentations link that's found in the Investor Relations tab. With all that said, I would now like to turn the call over to Dita. Dita, the call is yours. Yehudit Bronicki Thank you, Rob, and good morning, everyone. Thank you for joining us today for the presentation for our first quarter 2012 results and outlook for the near future. We are very pleased with the financial results of the first quarter, which was strong by just about every measure. Total revenue increased 35% year-over-year to a record quarterly revenue with Electricity and Product segment revenues increasing 5% and 156%, respectively. Our combined gross margin percentage was 30.1% for the quarter, almost doubling our gross margin during the same quarter in 2011 and $41.9 million cash flow from operations, the highest pure operating cash flow ever. We believe the numbers are a testament to the prudent approach we have taken to growing our business, while also ensuring an effective cost control. In the Product Segment, 2011 was a record year in booking of new orders. We continue to be awarded new contracts in the beginning of the year. We recorded record high revenues in Q1, thanks not only to the strength of the Product Segment, but to improved results in the Electricity segment as well. By reducing the operating cost to all the fleet, but in particular at North Brawley, results improved in all parameters, including gross margin, operating cash flow, net income and EBITDA.
Let me turn the call over to Joseph for a review of the financial. Yoram will review our operation. And following my remarks, we will open the call for Q&A. Joseph?Joseph Tenne Thank you, Dita and good morning, everyone. Beginning in Slide 5, total revenues for the first quarter were $132.4 million, a 35.3% increase over revenues of $97.8 million in the first quarter of 2011. Total cost of revenues increased by 11.7% compared to last year. In our Electricity segment on Slide 6, revenue for the first quarter of 2012 were $82.2 million, an increase of 5.1% over revenues of $78.3 million for the same quarter last year. The increase in Electricity revenues is due to higher variable energy rates of our Puna and Amatitlan PPAs and increased Electricity generation of some of our partners. In the Product Segment on the next slide, revenues for the first quarter increased 156.3% from $19.6 million in the first quarter of 2011 to $50.1 million this year. The increase in product revenues reflects the new customer orders that we secured in 2011. Moving to Slide 8. The company's combined gross margin for the first quarter was 30.1% versus 15.3% in the same quarter last year. The Electricity segment gross margin was 29.6% for the quarter versus 15.8% in Q1 2011. Excluding North Brawley, the Electricity segment's gross margin would have been 35.8% compared to 30.5% in 2011. In the Product Segment, gross margin for the first quarter was 30.9% versus 13.6% in the same quarter last year. The increase is due to higher revenues, the mix of products sold and different margins in the various sales contracts and it is also due to the revenues from the LNG project with no related cost of revenues. Read the rest of this transcript for free on seekingalpha.com