Full year 2010 revenue was $45 million, a 40% increase over 2009. The full-year revenue increase was primarily due to growth in the automotive and window film markets, as well as the addition of our glass segment resulting from the acquisition of a controlling interest in our insulating glass joint venture.
Net income before the Series A Preferred Dividend and fully diluted earnings per share for the fourth quarter of 2010 were $4.7 million and $0.63, respectively, as compared with net income before the Series A Preferred Dividend of $1.2 million and fully diluted earnings per share of $0.16 in the fourth quarter of 2009. Operating margins were lower in the fourth quarter of 2010 due to losses from our glass business and lower gross margins from automotive and architectural products. These lower margins were more than offset by the one-time reversal of a valuation allowance on deferred tax assets in the quarter. Operating income in 2010 was $6.3 million compared to $3.5 million in 2009 due to higher sales and improved operational efficiencies. These more than offset expenses attributed to the acquisitions of a controlling interest in Southwall Insulating Glass, LLC and of Crown Operations, Ltd.
"We are pleased with the 2010 performance that has enabled continued investment in long-term growth initiatives," said Dennis Capovilla, president and chief executive officer. "The acquisition of Crown Operations and controlling interest in our joint venture expands our capabilities beyond film, moves us closer to the customer, and makes it easier for customers to integrate the performance of our core film technologies into their products. In an environment of increasing fuel costs and growing awareness of climate change, we believe that customers will increasingly turn to energy efficiency solutions such as ours to meet their energy savings and emission reduction goals."
About Southwall Technologies Inc.
Southwall Technologies is the leading innovator of energy-saving films and glass products that dramatically improve the energy efficiency of buildings, homes and cars. Southwall is an ISO 9001/14001-certified manufacturer with customers in over 25 countries around the world.