These factors include but are not limited to the factors described in the company’s reports filed with the SEC, which are available on our website and on the SEC’s website at www.sec.gov. Investors are cautioned not to place undue reliance on forward-looking statements which speaks only as the date on which the statements are made. The company does not undertake to update such statements to reflect the impact of circumstances or events that are raised after the dates these statements were made. Investors should however, consult any further disclosures the company made in the report filed with the SEC.In addition please be advised that because of the prohibitions on selective disclosures, the company as a matter of policy does not disclose material that is not public information on their conference calls. If one of your questions requires the disclosure of material non-public information we will not be able to respond to it. Thank you. For the second quarter of 2010 we reported revenues of $19.4 million, operating income of $10 million, non-GAAP diluted net income of $5.0 million and non-GAAP diluted net income per share of $0.08. During the quarter we repaid remainder of our outstanding senior subordinated notes leaving us debt free. We also declared a quarterly dividend of $0.03 per share. I’ll review our financial results in greater detail in a few minutes. First, I’d like to turn the call over to Rich Pzena, who will discuss our view of the investing environment and how we’re positioned relative to it. Rich Pzena Thanks Greg. Looking at the first half of 2010, one would think the world must be on some strange kind of emotional roller coaster. As we move through the second quarter, fear took over from greed again. Investors around the world became obsessed by headlines of European debt and currency crisis, economic slowdown and new financial regulations.
All of these fears led to a broad decline in world equity markets as witness by a 12.7% decline in the MSCI world index and a flight from risk assets. The real question though is do these fears have any real impact on the long-term profitability of commercial business enterprises or are they simply a giant price discount that investor should pounce on.I’m sure you can guess our view. The one constant fact that seems to be perennially ignored by investors is that companies are run by people and the people react to changing economic situations. If there is inflation, they manage for inflation, if there is economic slowdown, they manage for economic slowdown. And although unanticipated changes in economic factors can cause an earnings dislocation, it is rare that fully anticipated changes will cause a problem. The current economic sluggishness has been widely and universally anticipated. Accordingly, companies are prepared. Operating margins and earnings are at or near record levels despite revenues which are significantly below recent peaks. Corporate leverage is below normal with many companies cash-rich and valuations are compelling. History tells us that companies can manage through almost any economic situation as long as they don’t have too much financial leverage and funding risk. Over the course of the last 50 years, the return on equity for the S&P 500 has fluctuated around a very flat trend line. Companies have averaged a 13.5% ROE during economic booms and economic buffs, during high inflation and low inflation, during high tax environments and low tax environments, during high interest rates and low interest rates. There is certainly no reason to believe that they won’t do it again. So the increase in volatility from this uncertainty has once again created a compelling opportunity for the value investor. As is usually the case, this opportunity is coming exactly on most investment committees and boards are demanding that the portfolios they oversee be structured to avoid another 2008. Read the rest of this transcript for free on seekingalpha.com