Turning now to our revenue performance; In terms of constant currency we reported sales of $12.9 million, a 29% increase over last year. This growth was due to 37% growth in direct sales while our private label sales grew 8%. The Laprolan acquisition coupled with strong sales in the US and the U.K. rolled the growth in direct sales. This strength was partially muted by the slippage of a large international tender order out of the second quarter and into the second half.
In terms of GAAP earnings we reported a loss of approximately $1.3 million. On a non-GAAP basis after striping out acquisition costs and certain non-cash expenses we reported a loss of $437,000 which is generally inline with our expectations considering the increase in selling and marketing expenses.
Now let me turn it over to Dave for further details.
David JonasThanks, Jim. I am going to spend a few minutes highlighting the results reflected in our just released second quarter earnings release. Ease of discussion, unless otherwise noted order all sales information will discussed in constant currency. I am doing this to exclude the impact of foreign currency exchange in order to show a true reflection of our sales growth. Foreign currency has a benefit of approximately $102,000 in the second quarter was a drag of about $20,000 in the first half. As Jim mentioned, total sales rose 29% to $12.9 million from $9.8 million a year ago. Total sales in the U.S. increased 16% to $4.7 million from $4.1 million and solid strength in direct sales. Total sales outside of the U.S. mainly in the Europe and Middle East which I will refer to as the EME region increased 41% on a very healthy growth in direct sales. In large part due to acquisition of Laprolan partially offset by decline in private label sales.