The company’s projections and forward-looking statements are based on factors that are subject to change and therefore these statements speak only as of the date they are given. The company assumes no obligation to update any projections or forward-looking statements. In addition, regarding orders and backlogs, there can be no assurance that the company will recognize revenue related to its purchase orders and other commitments in any particular period or at all, because some of these purchase orders and other commitments are subject to contingencies that are outside of our control. In addition, these orders and commitments may be revised, modified or canceled, either by their express terms as a result of negotiations or by project changes or delays.
Now, I would turn the call over to Mike Kaminski, President and Chief Executive Officer of Stereotaxis.
Thank you, Greg. Good afternoon everyone. Thank you for joining us today on our first quarter 2011 conference call. With me today is Dan Johnston, our Chief Financial Officer. I will start with our prepared remarks with a review of the first quarter and then preview our exciting key product introductions scheduled for the HRS meeting in San Francisco this week. Including in our new releases are the Epoch platform, that we announced in the press release a few days ago. Dan will then discuss the financials before we open it up to your questions . So let me get started. In the first quarter, we generated $10.2 million in revenue including $4.3 million in capital and $5.9 million in recurring revenue. Gross margins remained strong at 71% and operating expenses were in line with our expectations reflecting an increased spending in the Odyssey infrastructure and the Asia-Pacific channel. New orders totaled $7.1 million, virtually identical to the $7.2 million reported in the prior year period, and reflecting first quarter seasonality.