For the fourth quarter ended December 31, 2010, Hemisphere GPS reported $12.2 million in revenues, compared to $12.1 million recorded in the fourth quarter of 2009. Revenues from all market segments increased in the fourth quarter with the exception of OEM sales in the Agriculture segment which were 31% below 2009 due to timing of order receipts. Specifically, OEM revenues increased by 20% during the second half of 2010, driven by high deliveries in the third quarter which increased 106% over 2009. In the fourth quarter, however, expected OEM orders were deferred into the first half of 2011. Despite deferred orders, the fourth quarter of 2010 still represents the second highest fourth quarter revenue in the Company’s history and the last half of the year is the strongest on record for Hemisphere GPS.
A weaker US dollar softened gross margins and increased operating costs during the fourth quarter. Incremental inventory reserves also lowered margins during the quarter. Hemisphere GPS reported a net loss for the fourth quarter of $3.8 million, or $(0.07) per share (basic and diluted), compared to a net loss of $2.5 million, or ($0.04) per share (basic and diluted), in the fourth quarter of 2009.