56 Dialog Semiconductor Plc | Annual report and accounts 2012  |  Section 4 | Consolidated financial statements and notes Consolidated income statement For the year ended 31 December 2012  Notes 2012  US$000  2011 US$000 Revenue  3, 24, 27 773,583  527,261 Cost of sales  (480,971)  (319,073) Gross profit  292,612  208,188 Selling and marketing expenses  (38,669) (32,370) General and administrative expenses  (33,476) (24,442) Research and development expenses  24 (127,886)  (90,046) Restructuring  4 (1,549) – Other operating income  3, 27 – 303 Operating profit  3 91,032  61,633 Interest income  3 1,360  376 Interest expense  3 (6,466) (235) Foreign currency exchange gains (losses), net  199  (352) Result before income taxes  86,125  61,422 Income tax expense  5 (23,612) (4,070) Net profit  62,513  57,352 2012  2011 Earnings per share (in US$) Basic  0.97  0.91 Diluted 0.93  0.86 Weighted average number of shares (in thousands) 2 Basic  64,681  62,873 Diluted  67,354  66,711