ACQUISITION OF OSTERGRENS

12 Months Ended

Dec. 31, 2011

ACQUISITION OF OSTERGRENS

ACQUISITION OF OSTERGRENS

12. ACQUISITION OF ÖSTERGRENS

        On December 30, 2010, Allied Motion Technologies B.V., a wholly-owned subsidiary of Allied Motion Technologies Inc., acquired 100% of the shares of Östergrens Elmotor AB, headquartered in Solna, Sweden. Östergrens has manufacturing facilities in Sweden and China. The accompanying consolidated financial statements include the operating results of Östergrens for the year ended December 31, 2011.

        The Consolidated Statement of Operations for the year ended December 31, 2010 does not include any results from Östergrens, based on the timing of the acquisition.

Pro-forma Condensed Combined Consolidated Statement of Operations (Unaudited)

        The following presents the Company's unaudited pro forma financial information for the year ended December 31, 2010 after certain pro forma adjustments, such as additional depreciation and amortization as a result of valuation of amortizable tangible and intangible assets, interest on borrowings made by the Company to accomplish the acquisition giving effect to the acquisition of Östergrens as if it had occurred at January 1, 2010. The pro forma financial information is for information purposes only and does not purport to present what the Company's results would actually have been had the acquisition occurred on that date or to project the Company's results for operations for any future period:

	For the year ended December 31, 2010
Revenues	$	97,575
Gross margin	$	27,800
Operating income	$	5,340
Net income	$	3,740
Diluted net income per share	$	0.46

        The acquisition of Östergrens was recorded in accordance with Business Combinations and Fair Value guidance. The pro forma adjustments do not reflect adjustments for anticipated operating efficiencies that the Company expects to achieve as a result of this acquisition. The pro forma financial information is for informational purposes only and does not purport to present what the Company's results would actually have been had these transactions actually occurred on the dates presented or to project the combined company's results of operations or financial position for any future period.