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I will now turn the call over to Jay. Jay.Jay Higham Thank you, John, and good morning everyone. Thank you for joining us today. In Q2, IntegraMed achieved top-line growth of 10% across our business, and we were able to drive more of that growth to the bottom-line with operating income or contribution as we refer to it increasing 15%. As a reminder, this is the first quarter in which we reflect the combination of our former Fertility Centers and Consumer Services Divisions under a newly created division Attain Fertility Centers. This new division is being led by Andrew Mintz, who has a strong track record of successfully managing large physician-based medical groups. Going forward, we will use the term Partner Centers to refer to fertility clinics that benefit from all IntegraMed assets and resources and are managed by the company. We will use the term affiliate centers to refer to fertility clinics that only offer our Attain idea of program. The combination of the divisions acknowledges the fact that a good portion of our Attain idea of program business is being written at IntegraMed Partner Centers. We combine the two businesses because separate reporting structures were no longer necessary and in some respects hindered our agility and decision making. By combining the fertility business under the Attain fertility brand, we believe we will be able to generate added synergies, growth and profitability including the opportunity to better leverage our brand with consumers. We also hope this combination will make it easier for investors to focus on our two core areas of specialty fertility and vein care. For the 2010 second quarter, our new Attain Fertility Centers Division generated an 8% increase from revenues and a 4% increase in contribution. That we saw a slowdown in revenue growth in our Fertility Centers relative to recent quarters, our Attain idea of program had a very strong performance at both partner and affiliate centers more than offsetting some of the pockets of softness in our partner business. We attribute this softness through our partner centers to the lingering effects of the economic slowdown. After perhaps a modest rebound in consumer optimism and spending earlier in the year, consumers will appear to be a little more reserved in their spending in our fertility segment.
The number of high cost idea of treatments remained flat with gross being seen in lower cost intrauterine insemination procedures or IUIs, as well as other fertility treatments and diagnostics. This combined effect driven overall slight increase in partner revenue.Affiliates and partners offering our Attain idea of program benefited from our marketing initiatives achieving strong growth in patient applications and program enrollments. The marketing initiatives include radio advertising, direct mail, physician referral, education initiatives, Internet advertising, as well as the launch of our new attainfertility.com web portal. These efforts sharply increased the volume of applications up 54% as well as enrollment up 81%. Revenue from the Attain idea program also benefited from a net increase of new affiliates to 27 reflecting the addition of six new affiliates over the past year, along with the termination of two affiliates that had no meaningful impact on the program. Just as in Q1 2010, Q2 2010 operating performance in our Attain IVF program was dampened when compared to last year as Q2 ‘09 pregnancy rates were at unsustainably high levels versus more normal levels this year. Pregnancy is a key milestone in our revenue recognition methodology for the Attain IVF program, so any fluctuation will have a meaningful short-term impact on revenue and profitability. In addition to pregnancy rates, increased investments in G&A to support long-term growth resulted in operating income growth from our Attain IVF program trailing revenue growth. Despite current demand fluctuations, our 25 years of experience in the field gives us confidence in the long-term demand for fertility treatment and we are developing services to meet current budgets. As consumer economic challenges begin to dissipate, we believe the patient demand will firm up for all forms of fertility treatment. Read the rest of this transcript for free on seekingalpha.com