Highpower International, Inc. reported consolidated earnings results for the fourth quarter and year ended December 31, 2011. For the quarter, net sales totaled $26.4 million, a year-over-year decrease of 5% compared with $27.7 million for the fourth quarter ended December 31, 2010. The decrease in sales for the fourth quarter was primarily due to a decrease in the number of Ni-MH battery units sold and a decline in revenues in the materials segment as this business shifts to a full recycling platform. Income from operations for the fourth quarter of 2011 was $96,387 as compared with income from operations of $1.6 million for the fourth quarter of 2010. Included in these results were non-cash stock-based compensation expenses of $39,000 and $17,000, respectively. Loss before taxes was $1.3 million against income before taxes of $1.6 million last year. Net loss for the fourth quarter of 2011 was $1.6 million or $0.12 per basic and diluted share. This compares with fourth quarter of 2010 net income of $1.4 million or $0.10 per basic and diluted share. Included in the fourth quarter of 2011 results was a $1.5 million litigation settlement expense for a fire incident that occurred in 2006 and $39,000 of non-cash stock-based compensation. For the year, net sales totaled $110.6 million, a year-over-year increase of 6% compared with $104.2 million for the year ended December 31, 2010. The year-over-year increase was primarily due to a 33% increase in overall lithium revenue, driven by a 35% increase in volume of lithium batteries per ampere hour, which helped off-set a 10% decline in volume in the Ni-MH battery segment. In addition, materials revenue increased to $17.4 million in 2011 from $12.6 million in 2010. Loss from operations for 2011 was $0.7 million, as compared with income from operations of $7.1 million for 2010. Included in these results were non-cash stock-based compensation expenses of $0.7 million and $0.1 million, respectively. Loss before taxes was $2 million against income before taxes of $7.2 million last year. Net loss for the year was $2.5 million or $0.18 per basic and diluted share. This compares with 2010 net income of $6.0 million or $0.44 per basic and diluted share. Included in the 2011 results was a $1.5 million litigation settlement expense for a fire incident which occurred in 2006 and $0.7 million of non-cash stock-based compensation. Net cash flows provided by operating activities were $3.7 million against $3.7 million last year. Acquisition of property, plant and equipment was $7.7 million against $5.2 million last year. Based on current expectations for global demand for the rechargeable battery market in 2012 and continued shift toward higher-value energy storage systems and transportation products, the company expects revenues to grow between 15% to 25% over 2011 revenue levels.