Looking a little deeper into the revenue performance compared to last year’s Q2, our US hospital revenue was up 20%. Our US enterprise was level. Our primary care group was up 19% sequentially versus Q1 and the ultrasound portion of those revenues were up very impressively and finally our MSK revenues more than doubled.International revenue was up 2%. We were impacted from a slow down in Europe and we saw strong performances throughout all of other international markets in excellent mid-teens profitability improvement in our international business. Moving over to the first half, revenue was $117.5 million up 13% from the prior year. Our primary care channel was about $7 million of that total revenue. Our core revenue was up 6%. US hospital revenue was up 17% in the first half, US enterprise revenue was down 37% in the first half as expected. International was up 5% in the first half as expected and for the first half changes in currency had a positive impact of 2%. Gross margin came in at a record of 72.1% up 140 basis points for the quarter and up 230 basis points over the first half. Gross margins improve from pricing discipline and an improved product mix. I’m going to now move over to operating expenses, so operating expenses for the second quarter, OpEx came in at $38.2 million, up 12% but this included $2.5 million of charges related to the acquisition of VisualSonics. If you exclude the VisualSonics charges as well as last year’s CardioDynamics acquisition charges, our core OpEx was $32.5 million down 4%. In the first half, OpEx was $75.2 million, up 11% once again including $2.5 million of acquisition charges. Excluding acquisition charges for both VisualSonics and CardioDynamics, our core OpEx was $65.4 million down 3%. Changes in currency had an unfavorable impact of 1%.
I’m going to move over now to EBIT and EBITDA for the second quarter. Excluding acquisition related charges, EBIT was $8.7 million or 14% or revenue, an increase of 145% compared to the prior year. Again excluding acquisition related charges, EBITDAS was $11.4 million, an increase of 90%.I’m going to move over now to the first half. Again, excluding acquisition related charges, EBIT increased to 121% to $11.3 million. Again excluding charges EBITDAS increase 51% to $16.8 million. Cash flow from operation was $21.3 million versus $7.4 million in this year’s first half approximately $1.33 a share, using 16 million shares weighted over the half. Now, moving over to net income and EPS. For the quarter, excluding acquisition related charges, net income was $4.4 million or $0.29 a share versus $0.02 a share last year. With the acquisition charges included, net income was $1.9 million or $0.12 a share, a 6x-improvement over last year. Now for the first half, excluding acquisition charges, net income was $5.8 million or $0.36 a share versus $1.3 million or $0.07 a share last year, a 5x increase. With the acquisition charges included, net income was $3.3 million or $0.20 per share versus $1.3 million or $0.07 per share in the last year. A portion of the acquisition expense was not tax deductible by the way. Moving over to cash flow. For the first half, cash flow from operations was $21.3 million compared to $7.4 million last year, an increase of just under $14 million. In the first half, the company used $98.9 million of cash to repurchase 3.3 million shares of our stock. Since quarter-end, the company has also purchased an additional 475,000 shares and has approximately $30 million remaining in Board-authorized buyback capital. Read the rest of this transcript for free on seekingalpha.com