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We refer you to the documents that Actions files from time to time with the SEC, specifically the company’s most recently filed Forms F-1, 20-F and 6-Ks. These documents identify important factors that could cause the actual results to differ materially from those contained in our projections or forward-looking statements.And now I’d like to turn the call over to Patricia Chou. Patricia Chou Thank you for participating in Actions’ second quarter earnings conference call. We appreciate your continued interest and support for Actions. Similar to our last earnings call, I will provide the business update and discuss financial results for the second quarter as well as the expectations for our future results. And Niccolo will be available during the Q&A portion of the call where I will translate from Mandarin to English on his behalf. As a reminder, our financials are reported in accordance with U.S GAAP. We were pleased to deliver a slightly better than expected results for the second quarter. We continued to experience solid demand across our product lines during the historical slow season. Shipment volumes increased by 26% even with higher volumes in our low end products targeted at the automotive and the boom box sectors of the market the decline on our branded ASPs was relatively small and we sustained our gross margin. In the second quarter ended June 30 th, 2010, we recorded revenue of $9.7 million compared to $7.9 million in the first quarter. Our gross margin for the second quarter was at 39.6% compared to 39.6% for the first quarter. We were pleased that we maintained our gross margin at consistent levels through first quarter as our cost down activities helped offset the ongoing presence of ASP pressure and we continued to benefit from revenue contribution from our high end products. For the second quarter, total stock based compensation expense amounted to $0.9 million compared to $1 million in the first quarter. R&D expense was $4.4 million or 45.9% of revenue for the second quarter, which was slightly lower than the first quarter of $4.6 million. We continue to expect our R&D expense to represent a high percentage of revenue as we expand our resources by growing our pool of engineering talent working on next generation PMP products and new business initiatives. During the second quarter, we hired approximately 35 engineers to strengthen our R&D capability.
G&A expense was $2.4 million in the second quarter or 24.3% of revenue as compared to $1.7 million in the first quarter or 22.1% of revenue in the first quarter which included receiving the annual ADS related expense reimbursement from our depositor bank.Sales and marketing expense was $0.3 million in the second quarter or 3.2% of revenue compared to $0.2 million in the first quarter. We continue to tightly manage the expense levels in these categories as a result of our [high] employees across non-engineering functions and the salary cuts in management level. Operating loss was $2.9 million for the second quarter compared to operating loss of $3.3 million for the first quarter. We continue to focus on the sequential improvements in profitability and our persistent cost management in the second quarter. Net average income of $0.5 million was recorded in the second quarter as an end result of the foreign exchange gain and lost on Renminbi and renewed Taiwanese Dollars versus U.S Dollars. This compared to other income of $31,000 for the first quarter also related to a net foreign exchange gain. Read the rest of this transcript for free on seekingalpha.com