Shengkai Innovations, Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended March 31, 2012. For the quarter, the company reported revenue of $5.7 million, loss from operations of $0.3 million, income before income taxes of $0.2 million and net loss of $0.1 million or $0.01 per diluted share against revenue of $26.6 million, income from operations of $7.5 million, income before income taxes of $29.1 million and net income of $27.2 million or $1.46 per diluted share for the same period a year ago. Excluding the non-cash share-based compensation, non-GAAP operating income was approximately $0.7 million, compared with non-GAAP operating income of approximately $11.7 million for the same period a year ago. Excluding the non-cash items of share-based compensation and changes in fair value of instruments, non-GAAP net income was approximately $0.8 million compared with approximately $10.0 million for the same period a year ago. The decrease was primarily due to the decline in revenues resulting from slowdown in economy, increase in product sales price and operational transition, coupled with higher costs associated with depreciation and raw material expenses. Non-GAAP earnings were $0.05 per diluted share compared with $0.54 per diluted share for the same period a year ago. For the nine months, the company reported revenue of $27.0 million, income from operations of $1.3 million, income before income taxes of $4.0 million and net income of $2.6 million or $0.14 per diluted share against revenue of $66.2 million, income from operations of $22.6 million, income before income taxes of $73.7 million and net income of $69 million or $3.83 per diluted share for the same period a year ago. Net cash provided by operating activities was $7.7 million against $21.1 million for the same period a year ago. Purchase of property, plant and equipment was $0.53 million against $0.71 million for the same period a year ago. The decrease in revenue was due to the company's operational transition and the general slowdown in economy in the PRC and the increase in the product sales price. Excluding non-cash items of share-based compensation and change in fair value of instruments, non-GAAP net income was approximately $5.0 million compared with approximately $24.8 million for the same period a year ago. The decrease was primarily due to the decline in revenues resulting from slowdown in economy in the PRC, increase in the product sales price and operational transition, coupled with higher costs associated with depreciation and raw material expenses. Non-GAAP diluted earnings were $0.27 per diluted share, compared to non-GAAP earnings of $1.37 per diluted share for the same period a year ago.