We would like to remind you that during the course of this conference call, Actions' management team may make projections or other forward-looking statements regarding future events or the future financial performance of the company. We wish to caution you that such statements are simply estimates and actual events or results may differ materially.
We refer you to the documents that Actions files from time to time with the SEC, specifically the company’s most recently filed Form F-1, 20-F and 6-Ks. These documents identify important factors that could cause the actual results to differ materially from those contained in our projections or forward-looking statements.
And now, I would like to turn the call over to Patricia Chou.
Patricia ChouThank you for participating in Actions’ third quarter earnings conference call. We appreciate your continued interest and support for Actions. I will provide a business update and discuss financial results for the third quarter, as well as expectations for future performance. And Niccolo will be available during the Q&A portion of the call where I will translate from Mandarin to English on his behalf. As a reminder, our financials are reported on a U.S. GAAP basis. Our results for the third quarter were largely in line with our expectation. Our gross margins were slightly better than expected, continuing a positive trend since the beginning of 2010. We experienced increased revenue contribution from our high-end products, which leaded to higher average selling prices during the quarter. With reduced sales of our low-end products, such as automotive and boom box products, we saw a decline in shipment volume sequentially. During the quarter, we recognized several one-time items that significantly contributed to our bottom line results, such as the foreign exchange gain, a reversal of overestimated employee stock-based compensation expenses, and a gain resulting from the acquisition of additional equity interest of Mavrix.