During this call, the company will also be referring to several non-GAAP measures. The press release issued this morning includes a reconciliation of these measures to GAAP measures and is available on the Investor Relations tab of the company's website.
Thank you. Mr. Lucia, you may begin your conference.
William C. Lucia
Thank you, Katherine, and good morning, everyone. Thank you for joining our second quarter 2012 earnings call. I'm Bill Lucia, President and CEO of HMS Holdings. I'll be hosting the call, along with Walter Hosp, our CFO.HMS had another strong quarter. Revenue was up 34.4% to $120.1 million compared to $89.3 million for the same period a year ago. Adjusted EPS grew 35% year-over-year to $0.23 per share. The backdrop for our call today is the Supreme Court decision to uphold the constitutionality of the ACA, providing clear support for HMS' long-term growth strategy. This ruling has removed many of the uncertainties related to the ACA, and many states are now moving forward with the law, including the Medicaid Recovery Audit Contractor program. I'll talk more about this later. Walter will now review our financials and then I will discuss our sales and the Supreme Court ruling and its impact on HMS' growth strategy. Walter? Walter D. Hosp Thank you, Bill. Good morning, everyone. As Bill mentioned, revenue for the second quarter of 2012 increased 34.4% year-over-year due to $120.1 million. This nearly matches the $121.2 million consensus forecast of security analysts who follow HMS. Revenue growth in the quarter was mixed across our markets. In our Medicaid market, which includes State Government and Medicaid managed care clients, year-over-year revenue growth was 12.2% for the quarter. In our federal business, we previously announced our decision to not rebid one CMS audit MIC contract. We also spoke of specific Medicare ZPIC contracts that we terminated due to conflicts with HDI's Medicare RAC contract. As a result of these decisions, revenues in our federal business was down 14.9% year-over-year. HDI revenues for the quarter were $23.8 million to go. Because HDI was not part of HMS in the second quarter of 2011, there is no comparable growth rate. However, we would estimate that HDI's year-over-year organic growth for the quarter is approximately 90% after adjusting for differences in revenue recognition. We are also reaffirming the 2012 revenue guidance for HDI at approximately $95 million.