For the year ended Dec. 31, 2006, Shamir Optical Industry's revenues grew by 21 percent to $97.3 million. The Israeli company reported a gross margin of 54.7 percent, down from 55.2 percent in the year before. Operating income plummeted by 41.4 percent to $7.1 million. Excluding the effects of non-cash stock-based compensation expenses, Shamir's operating income stood at $8.5 million. Net income fell by 20.3 percent to $6.5 million. In the 4th quarter, revenues increased by 26.7 percent to $25.4 million. The gross margin shrunk by 440 basis points to 52.4 percent. Operating income dropped by 51.4 percent to $1.3 million, and net income fell by 34.6 percent to $1.4 million.