Now let me hand the call over to Ken.Ken McBride Thank you for joining us today. We were very pleased with our second quarter performance. The second quarter non-GAAP earnings per share was $0.20, which is up 43% versus last year. This is our highest quarterly non-GAAP earnings per share since 2006. Second quarter revenue for our core PC Postage business, which excludes the enhanced promotion channel, was up 9% versus the second quarter last year. We generated a sequential increase of 3,000 in our paid customer metric and a year-over-year increase of 21,000 paid customers. We continue to see strong results from our Enterprise business with second quarter revenue increasing by 62% versus the same quarter last year. And our high-volume shipper segment also continued to show good progress with Q2 postage printed by high-volume shippers growing 37% versus the second quarter last year. On the call today, we will talk about the PC Postage business in detail and then we'll talk about PhotoStamps, and then we'll discuss the financial results and our business outlook. Let me begin with a more detailed discussion of the PC Postage business. The customer metrics we discussed on the call exclude all enhanced promotion channel activity. For a more detail definition of how we calculate each of our metrics, you may refer to our quarterly investor metrics spreadsheet at investor.stamps.com. During the second quarter, we acquired approximately 52,000 gross small business customers, which is down 2% versus the same quarter last year. We believe the lower customer acquisition was partially attributable to the lack of postage rate increase, which is traditionally a driver of second quarter acquisition. We also believe that the challenging economic environment continues to impact our small business customer acquisition. Our cost per new small business customer acquired or CPA for the second quarter was $128, which was up 2% from $126 in the second quarter of 2009. The second quarter CPA reflects the lower acquisition levels during the seasonally-slower Q2. We continue to invest in customer acquisition as we are still earning a very good return on our market investment at the CPA levels.
Our monthly churn during the second quarter was 3.6%, which compares to 4.4% in the second quarter of 2009. We were encouraged to see our year-over-year churn metric continue to decrease as our 2010 quarterly churn rates of 3.4% to 3.6% are running lower than our 2009 quarterly churn rates, which were in the range of 3.6% to 4.4%. We historically see an increase from Q1 to Q2 in our churn metric. So Q2 was consistent with this pattern.Paid customers in the second quarter were 338,000, which is up 3,000 sequentially versus the 336,000 paid customers in the first quarter of 2010 and was up 7% compared to the second quarter of 2009. We were pleased with the growth in paid customers this quarter despite the lack of postage rate increase and the slowdown in acquisition we experienced. Last year during the second quarter, we saw a sequential decline in paid customers by 4,000. So an increase during Q2 of this year was positive for the business. The ARPU, average revenue per unit, was $17.91 in Q2, which is up 2% versus the $17.50 we saw in the second quarter of last year. The increase in ARPU was partially attributable to an increase in the average store revenue per paid customer, driven by increased usage of our service, and partially attributable to having a large number of customers on higher-priced plans. We do see some normal quarter-to-quarter fluctuations in our ARPU metrics based on factors such as pricing plan tests, store promotions, seasonality and other factors. Read the rest of this transcript for free on seekingalpha.com