Shamir Optical Industry Ltd. Reports Fourth Quarter and Year-End 20...( KIBBUTZ SHAMIR Israel March 6 /- ...),Health

KIBBUTZ SHAMIR, Israel, March 6 /PRNewswire-FirstCall/ -- Shamir Optical Industry Ltd. (Nasdaq: SHMR) ("Shamir"), a leading provider of innovative products and technology to the progressive ophthalmic lens market, today announced unaudited financial results for the fourth quarter and year ended December 31, 2007.

For the fourth quarter of 2007, revenues increased 20.3% to $30.6 million, compared to revenues of $25.4 million for the fourth quarter of 2006. Gross profit for the quarter was $17.4 million, or 56.7% of revenues, compared to gross profit of $13.3 million, or 52.4% of revenues for the same period last year. The gross profit for the fourth quarter of 2007 was influenced, by among other things, from a special grant received by one of our subsidiaries from its local government. The impact of this grant on the Company's gross profit for the fourth quarter of 2007 was approximately $0.6 million or 2% of revenues.

For the fourth quarter of 2007, operating income increased 112.9% to $2.7 million, or 8.8% of revenues, compared to operating income of $1.3 million, or 5% of revenues for the same period last year.

Net income for the fourth quarter increased 11.9% to $1.6 million or $0.09 per diluted share, compared to net income of $1.4 million, or $0.08 per diluted share, for the comparable period in 2006.

During this quarter we provided a valuation allowance on deferred tax assets related to our European subsidiaries. The impact of this valuation allowance on our tax expenses this quarter was an additional expense of $1.1 million, while the impact on our net profit was $0.6 million.

Excluding the effects of non-cash stock-based compensation expenses for the fourth quarter of 2007, operating income incre
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