Before we began, we would like to advise you that all statements that address expectations or projections about the future are forward-looking statements. Some of these statements include words such as expects, anticipates, plans, intends, projects and indicates. Although they reflect our current expectations, these statements are not guarantees of future performances, but involve a number of risks, uncertainties and assumptions. Please refer to our 10-K and 10-Qs for additional information on risks and uncertainties. And now I will turn the call over to Per.Per Loof Thank you, Dean and good morning everyone. Our first quarter ended June 30 was an extremely strong quarter, giving us a tremendous start to the new fiscal year. We saw revenue return to pre-recession levels and gross margins increase significantly. Net sales were up 14.5% over the prior quarter ended March 31 2010 and 62.3% over the same quarter last fiscal year. We are pleased to say that our consolidated gross margins was 25% reaching an historical level. This compares to 20.2% for the prior quarter, adjusted EBITDA was $45.2 million compared to approximately $25 million in the last quarter. This successful numbers are the result of our continuing effort to improve operating efficiencies, maintain cost controls, re-establish a strong balance sheet and our ability to meet the strong demand from our customers. Right upfront in today’s call, I’d like to thank all of our employees, our customers, our investors. Your support over the last couple of years have allowed us not only to weather the worldwide recession, but to come out much stronger. There are still possible headwinds to fight while we wait for the overall economic recovery to be more widespread, but we are positioned very well indeed in terms of financial strength, product demand and technology. We were pleased to have our stock listed on the New York Stock Amex Exchange this quarter and have also been pleased with the reception from the investment community. This has opened up our stock to much greater coverage and has made it easier for institutions as well as private investors to learn more about our company and invest in our future.
In April, we launched our new bond offering and it was finalized and funded on May the 5 th. We now have in place, the new 10.5% senior notes and the principal amount $230 million, which will mature on May 1, 2018.The structure of this new indebtedness is such there are interim principal payments. The entire $230 million balance is due at maturity. During the term of this loan, we will be making semi-annual interest payments beginning in November 2010. The proceeds from these bonds have been used to prepay all of the debt previously owned to Platinum Equity, about $57.8 million, UniCredit Corporate Banking, $104.7 million and Vishay Intertechnology, $15 million. In addition, in conjunction with the tender offer which was announced at the time we launched our new bond offering, we used the portion of the proceeds to purchase approximately half our remaining convertible senior notes. We accepted $40.5 million in principal amount of these outstanding notes at a small discount to par. The new senior notes represent a major milestone in KEMET’s financial evolution. We continue to meet or actually exceed our timing from moving equipment related to the reorganization of our F&E business. We spent an additional $1.7 million in relocation and integration costs this quarter. Our expectation for the next quarter would be to see an acceleration of actions to lower overhead in this business as part of our plan. Increased volumes helped the F&E business unit to contribute positive EBITDA and operating income results this quarter. We’re extremely pleased with the progress we are seeing and I will speak more into the dynamics of this business later in the call. During the quarter, we continue to see strong demand in each of our segments and geographies. While I will speak to how we see the next six months developing, at the end of our remarks, I will say that we are in general agreement with what you might hearing on other calls. Read the rest of this transcript for free on seekingalpha.com