I will now turn the call over to Bill Noglows.Bill Noglows Thanks, Amy. Good morning, everyone, and thanks for joining us. This morning we reported our third consecutive record revenue, totaling $101.7 million which represents the first time our company has exceeded $100 million in quarterly revenue. Additionally, we reported gross profit margin of 49.1% of revenue. Reflecting solid utilization of our manufacturing capacity, successful execution of productivity initiatives, disciplined pricing strategy and continued growth in our CMP pad business. For the quarter, we reported EPS of $0.43, which includes higher operating expenses which we pre-announced last week. The increase in operating expenses was primarily driven by higher cost related to our patent enforcement litigation with DuPont Air Products NanoMaterials or DA NanoMaterials, in which the validity of our patents was upheld. As we consider the current semiconductor industry outlook, we are seeing a number of continued positive signs. Near-term outlooks provided by our global customers remain strong. There is evidence of corporate IT spending increasing, semiconductor inventories are at low to normal levels, and we are entering a seasonally strong period of the year. In our view, the current bottleneck on near-term industry growth is our customer's ability to add capacity to meet current and future demand. We believe that our customer's production capacity is operating at very high utilization levels and they are optimizing current capacity as much as possible. That said, our customers are reacting swiftly and we are seeing new capacity additions come online at certain customers and expect this trend to continue and to accelerate into 2011. Addressing company related matters; we spend approximately $50 million a year on R&D and technical support to maintain our technology leadership. Through these investments, we have created a solid pipeline of innovative new or improved products, and we have built a strong intellectual property portfolio of approximately 750 patents worldwide.
Recently we completed a jury trial in connection with our patent enforcement litigation against DA NanoMaterials. We were pleased that the validity of all of our patents at issue was upheld. These are foundational patents in the field of Tungsten CMP other CMP polishing applications. This is important because we believe the rigorous testing of these patents to the U.S. judicial process has increased the strength of our intellectual property and our ability to enforce the IP worldwide. However, we were disappointed that the jury did not find the DA NanoMaterials product at issue in the case infringed on our patents. And we are considering an appeal of the jury's verdict on this point.Non-withstanding this patent enforcement litigation, we expect our Tungsten business to remain strong. And we believe that our customers fully6 understand and appreciate the value we bring to them with our products, which provide consistent reliable performance, day-after-day, year-after-year. Our experience with Tungsten industry is unmatched in the industry and our products are backed with our worldwide technical support, supply chain and quality infrastructure. Turning now to progress on our operations excellence initiative, we continue to achieve strong gross profit margin performance this quarter. Our ongoing efforts to improve productivity and drive out variation throughout our operations had contributed to our strong performance. As discussed at our Investor Day last month, we are on track to achieve a record level of productivity improvement in fiscal 2010. And over the past six years, our product variation has been reduced by more than 90%. In addition, we believe we are achieving differentiation through a robust quality and supply chain management and our customers continue to recognize our strong operational performance by selecting us for their supplier awards. In May, we were one of only 17 companies out of thousands of suppliers to UMC to be honored with its Outstanding Supplier award for 2009. Read the rest of this transcript for free on seekingalpha.com