This call will contain forward-looking statements that fall within the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 regarding future events and the future financial performance of the company including the company’s financial outlook. Bear in mind that such statements are only predictions and actual results may differ materially as a result of risks and uncertainties that pertain to our business. These risks are highlighted in our quarterly and annual SEC filings.
The forward-looking statements contained in this call are based on information as of today, November 2, 2011 and except as required by law, the company undertakes no obligation to update or revise any of these forward-looking statements.
Finally, this call will contain references to certain non-GAAP measures. The reconciliation of these non-GAAP measures is set forth in today’s press release and in our Form 8-K filing.
At this point, I’ll turn the call over to our Chairman, President and CEO, Suri Suriyakumar. Suri?Suri SuriyakumarThank you, David and good afternoon. As we stated in our release earlier today, macroeconomic conditions continue to remain sluggish at best. We saw it coming, and there were no surprises during the quarter. The AEC market remains flat despite some sporadic signs of activity relative to the first two quarters of the year.That being said ARC continues to maintain its strong financial and operational performance. We delivered adjusted EPS of $0.02 at $17.6 million for the quarter, and $29.5 million year-to-date. Our cash flow from operation remains very strong. Despite a year-over-year sales decline of $4.6 million, we increased our gross margin from 32% to 32.4% for the same period, while making necessary investments in areas such as MPS, color and technology to reposition the company for growth as the economy recovers.We were also very happy to pay down the outstanding balance of $8.9 million on our revolver at the end of October that is bringing our senior secured debt outstanding down to zero. Clearly this demonstrates our continuing ability to take quick and aggressive action to maintain the health of the company even in the face of a difficult economic condition.
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