Looking a little deeper into the revenue compared to last year’s Q3, US hospital revenue was up 13%, enterprise revenue was up 32%, and that includes the non-recurring charge to revenue of $813,000. Stabilization in Europe and a 15% increase in Asia-Pacific resulted in strengthening overall international sales. And changes in currency had a minimal impact on Q3.Now moving over to the first nine months of 2010. Revenue was $186.1 million, up 18% from the prior year’s nine months. Revenue from VSI was $8.7 million. Revenue excluding VSI was up 12% for the nine months. Overall US revenue was up 19%. US hospital revenue was up 16%. Enterprise was down 22% year-to-date, as expected. International was up 7%. And currency changes had a positive 1% impact on total revenue for nine months. I’m going to shift over now to gross margin. Gross margin came in at 71.3%, up 120 basis points for the quarter and 190 basis points for the first nine months. Stable pricing and geographic mix helped gross margins. Operating expenses now. For the quarter, including $1.4 million of one-time acquisition-related and restructuring charges, OpEx came in at $43.8 million. Excluding one-time charges, OpEx was $42.4 million, up 28%, including the acquisition of VSI. SonoSite’s core OpEx without VSI or without one-time charges was $37.1 million, up 12%. For the first nine months, including $3.9 nine months of one-time acquisition-related and restructuring charges, OpEx was $119 million. Excluding one-time charges, OpEx was $115.1 million or up 16%, again including the acquisition of VSI. SonoSite’s core OpEx without VSI or without one-time charges was $109.8 million, up 10%. The impact of having our cardiovascular disease management division on the P&L for nine months of 2010 account for 8 percentage points of the increase in OpEx, currently cited at 10% for the core business. Changes in currency had a minimal impact for both the quarter and nine months on OpEx.
I’m going to shift over now to EBIT and EBITDAS. First, for the quarter, excluding one-time charges, EBIT was $7.3 million or 11% of revenue, representing a 50% increase over the prior year. Again, excluding one-time charges, EBITDAS was $11.9 million, an increase of 55%. For the first nine months, excluding one-time charges, EBIT increased 86% to $18.6 million. And again excluding one-time charges, EBITDAS increased 54% to $28.7 million.I’m moving down now to net income and EPS. For the quarter, excluding one-time charges, net income was $2.6 million or $0.18 a share versus $0.6 million or $0.04 a share last year. With the one-time charges included, net income was $942,000 or $0.07 a share compared to a $0.01 loss last year. For the first nine months, excluding one-time charges, net income was $7.9 million or $0.51 a share versus $3.5 million or $0.20 a share last year, a 224% increase. With the one-time charges included, net income was $4.2 million or $0.27 per share versus $1 million or $0.06 a share in the prior year. I’m moving over to cash flow. For the first nine months, cash flow from operations was $17.5 million compared to $8.9 million last year, an increase of $8.6 million or 96%. Over the same period, the company used $126.1 million of cash to repurchase 4.2 million shares of stock under our previously announced share repurchase program. Read the rest of this transcript for free on seekingalpha.com