As usual, we are webcasting today. A replay of the webcast will be available for 90 days from today on the company's website.This call will contain forward-looking statements that fall within the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995, regarding future events and the future financial performance of the company, including the company's financial outlook. Bear in mind that such statements are only predictions, and actual results may differ materially as a result of risks and uncertainties that pertain to our business. These risks are highlighted in our quarterly and annual SEC filings. The forward-looking statements contained in this call are based on information as of today, August 3, 2010 and except as required by law, the company undertakes no obligation to update or revise any of these forward-looking statements. Finally, this call will contain references to certain non-GAAP measures. The reconciliation of these non-GAAP measures is set forth in today's press release, and in our Form 8-K filing. At this point I will turn the call over to our Chairman, President and CEO, Suri Suriyakumar. Suri? Suri Suriyakumar Thank you, David; and good afternoon, everyone. As we have stressed in our press release today, we continued to manage our business aggressively, knowing that market conditions are not likely to improve during the last half of the year. Our first quarter prediction that 2010 would test our mettle has proven accurate, but I am pleased with the way we are meeting that challenge. Throughout the first half of the year, we have refused to be intimated by the economy. Instead, we have focused on identifying opportunities to improve our business. We are refining our management practices, and improving our cost structure by eliminating overhead and non-essential spending. We are refreshing our sales priorities and using our excess capacity to focus on color, management services, and the refinement of our new digital tools. And we remain mindful that it is now is when we can best solidify our market share, and prepare for the market expansion when the economy improves. No other company in our space has so many resources to weather these extraordinary times. We have a strong capital structure, significant cash reserves, a broad geographic footprint, a technology-enabled workflow, and a sales force that can cover the nation.
So, how are we fairing? How are we managing these unique resources? During the second quarter, we saw our revenues continue to stabilize quarter over quarter. We delivered $0.04 in earnings per share, and saw our cash generation return to more robust levels, as we left the timing issues of the first quarter behind us.We generated $18.3 million in cash flow from operations, and have cash reserves in the bank totaling $33.7 million. And our gross margins improved from the first quarter from 32.9% to 34.3% in the second quarter. This performance leads me to reaffirm our annual forecast for EPS to be in the range of $0.15 to $0.30, and cash from operations to be in the range of $65 million to $80 million. Given my earlier commentary, we are likely to perform at the lower end of our forecast. We continue to believe that the AEC industry will lack the recovery of the general economy by a factor of nine to 12 months. The difficulty, of late, has been determining whether the general economy has recovered in any meaningful way, and if it has, to what degree. We have yet to put a stake in the ground to stay, this is when we should start the clock for our own recovery. While we may plant that stake in late 2010, I would not be surprised if it turns out to be later in 2011. Once again, we refuse to be hamstrung by these uncertainties. We can wait, or we can act. So, we have chosen to act. Read the rest of this transcript for free on seekingalpha.com