More information about those risks and uncertainties is highlighted on the second page of the slides and contained in our SEC filings. We caution listeners not to rely unduly on forward-looking statements and disclaim any intent or obligation to update them.
During this call, we will be referring to non-GAAP financial measures. A reconciliation to GAAP measures is available on the IR website.
And now, I will turn the call over to Marc.
Marc LefarThank you, Leslie, and good morning, everyone. The second quarter was marked by a number of key accomplishments. We reduced churn to 2.5%, a 30 basis points improvement from the first quarter and returned to some of our best quarterly levels in the past four years. Our balance sheet is stronger than it's ever been. We now have essentially no net debt for the first time since 2007. We grew EBITDA by $3 million sequentially to $35 million after investing $4 million in growth initiatives, and although we were disappointed that circumstances led to the cancellation of the Amdocs ordering and billing project. Our decision was made possible by the improvements in the stability and flexibility of our existing IT infrastructure over the past three years. As a result, we are also lowering our CapEx guidance for 2012 by at least $5 million to $10 million. Across our growth initiatives, we continue to make progress. In international long distance, we continue to reinforce the compelling value proposition of our flagship Vonage World plan to large growth segments such as Pakistan and Mexico with highly targeted sales and marketing campaigns. And just this week, we launched a new calling plan in the Philippines with our partner Globe Telecom, delivering unprecedented value to the more than 3 million Filipinos living in the U.S. We expect to announce at least one more partnership in the second half of the year.