I would now like to turn the conference over to Mr. Moskowitz. Please go ahead, sir.Joel P. Moskowitz Thank you very much, Nancy. This morning, before the opening of the stock market, we released our second quarter 2012 financial results. And now, as we've done for a number of years now, we'll follow a pattern of reviewing that release, having Jerry Pellizon, our CFO, give you some additional information and then open it to Q&A. The sales for the second quarter were $130.6 million, and that compared to last year in the same period of $145.4 million. Our net income for Q2 was $6.8 million or $0.28 per fully diluted share, and that compared to a net income in 2011 of $19.1 million or $0.76 per fully diluted share. In Q2, our fully diluted average shares outstanding were 24,307,290. A year ago, they were somewhat more in the same period, they were 25,223,757. Our gross profit margin was 28.1% of net sales, and that compared to last year of 36.4% in the same comparable quarter, that is the second quarter. The provision for income taxes, which Jerry will comment on, was 40.1% in Q2 this year, and that compared to a provision for income taxes last year in the same quarter of 34.8%. For the 6 months, our sales were $237 million, and that compared to $295.5 million in the same period last year, with our net income for the 6 months ending June 30, 2012, at $10.6 million or $0.44 per fully diluted share. And that was on 24,300,045 shares. Now that compares to a year ago of $42.7 million or $1.70 per fully diluted share, and that was on a higher number of shares, 25,171,897. Our gross margin for the 6 months ending June 30 was 27.8%. Now that compared to last year of 37.6%. The provision for income taxes in the 6 months ending June 30 was 39%. That compared to a provision for income taxes of 33.4% in the same period in 2011.
New orders for the 3 months ending June 30, 2012, were $79.4 million compared to $108.8 million last year for the same period. And comparing 6 months to 6 months, our new orders were $160.2 million through June 30, 2012. That compared to $340.5 million for the comparable period last year, resulting in a backlog as of June 30 of $208.8 million, and that compared to last year's backlog of $230.8 million.Our cash, including cash equivalents and short-term investments, were down somewhat to $268.1 million at June 30, 2012, compared to $275 million last year -- or as of the end of last year, December 31, 2011. Now in my comments, I stated that although we were pleased that our -- the direction was right, that we increased from $0.16 per share in Q1 to $0.28 in Q2, that we continue to see short-term problems. And we have these short-term concerns regarding the anticipated solar rebound, its timing and when it occurs, we anticipate there'll be a reduced gross profit margins. In the second quarter alone, our losses from our Solar Crucible business, which a year ago, had the highest margins in the company, went into the negative and actually reduced our fully diluted earnings by $0.14. If we do not see improved shipment levels in both solar and defense, then the second half of 2012 operating results will likely be similar but could be somewhat greater than our first half 2012. I then went on to make some comments on the Solar business. These are based on inputs that we received from a host of sources, including, most recently, at a major exhibition in San Francisco and private meetings that I had in Europe. The demand for photovoltaic solar energy, as measured by solar installations, increased about 21% from 2010 to 2011, and it looks like it's going to increase again, perhaps to around 30 gigawatts worldwide, which is a more modest growth in 2012. Read the rest of this transcript for free on seekingalpha.com