Sales of $493.7 million for the year increased 18.4% over the $417.1 reported in 1999 and reached a record high.
Fourth quarter operating income of $19.8 million represents a 7.6% increase over the $18.4 million for the same period a year ago. Gross margin improved to 32.5% of sales compared with 30.8% in the fourth quarter of 1999. Net income rose 26.1% to $11.1 million from the $8.8 million reported a year ago. Diluted earnings per share were $0.26, a 13 % increase over the $0.23 reported for the similar period.
Sequentially, sales decreased 8.1% from the record $130.5 million reported for the third quarter of 2000. The sequential sales decline was a result of an increased level of inventory at distributors and several OEM customers due to moderating end market growth from the high levels experienced in the first half of 2000.
For the year ended December 31, 2000, operating income rose 50.4% from $56.0 million to $84.2 million. Diluted earnings per share improved by 63.6% from $0.66 to a record high of $1.08. We are extremely pleased with the record performance of our business in 2000, stated Ronald A. Ostertag, Chairman and Chief Executive Officer. We are disappointed that the recent slowdown in technology spending and subsequent increase in inventory levels at several of our customers has effected our short term performance. However, we are very pleased with our progress against our power management strategy and are confident that our evolving new product portfolio will fuel the continued long term growth of General Semiconductor.
New products represented over 8.0% of sales in the quarter compared to 4.7% in the same quarter a year ago, demonstrating the continued success of our strategy. An additional 24 MOSFET design wins were registered in the fourth quarter, bringing the total for 2000 to 70. Sales from new products for the full year more than doubled from the level recorded in 1999.
