Operating margin was driven by solid improvement in ISS's margin offset by increased investment to accelerate the product roadmap and expand globally in Perceptive Software and other cost and expense that John will describe later.
This, along with an unfavorable impact from discrete tax items of $0.06 per share, resulted in non-GAAP earnings per share of $0.95 at the low end of what we expected.
Now on Slide 5, we've shown our total unit laser shipments from 2007 to an estimate for 2011. As you can see, our overall laser hardware shipments into the install base over the last 5 years have been up and down on a unit basis.
At the same time, we saw record laser supplies revenues for 2010 and for the first 9 months of 2011, and we're projecting for the full year 2011. Although we have seen uneven laser unit shipment performance into the installed base over the last several years, our statistical model indicates that the record laser supplies growth is attributable to the quality, not the quantity of the installed base since not all units are created equal. In other words, we're seeing increased average supplies consumption per installed unit of our base. Remember, supplies revenue as a function of the installed base size and the supplies revenue generated per unit of installed base, while one may debate whether our laser installed base has grown based on the variation in the shipments into the installed base over the past few years, our model indicates that the key driver of the core laser supplies growth we're seeing is an increase in supplies revenue generated per installed base unit.Read the rest of this transcript for free on seekingalpha.com
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