In addition, today’s presentation includes certain financial measures used to better understand our business that have not been prepared in accordance with the Generally Accepted Accounting Principles, better known as GAAP. An explanation and reconciliation of these non-GAAP measures has been provided in today’s news release issued by the company and is available on the website at www.angiodynamics.com.AngioDynamics uses non-GAAP measures to establish operational goals and believes that non-GAAP measures may assist investors in analyzing the underlying trends of the company’s business over time. Investors should consider these non-GAAP measures in addition to, not as a substitute for or superior to, financial reporting measures prepared in accordance with GAAP. On today's call, the company has reported non-GAAP EBITDA and EBITDA per share and has reviewed these measures as an internal analysis and review of operational performance. Finally, during the question-and-answer period today, we’d like to request each caller to limit themselves to two questions and encourage callers to re-queue to ask additional questions. We appreciate everyone’s cooperation with this procedure. And now, I’d like to turn the call over to Jan Keltjens, president and chief executive officer of AngioDynamics. Jan Keltjens Thank you Greg, and good afternoon everyone. Thank you for joining us on our second quarter conference call. With me today is Joe Gersuk, our chief financial officer. The discussion this afternoon will go as follows. I will start with an overview of our fiscal 2011 second quarter results. Then, I will provide an update on the progress of the NanoKnife program and review our strategy to achieve our long-term goal to grow at a rate that is significantly faster than the markets in which we operate. Joe will then review our financial highlights for the quarter before we close with Q&A. This afternoon, after the market closed, we reported net sales for the second quarter of $53.4 million, virtually identical to the $53.5 million reported in the prior year period. Net income for the quarter increased 5% to $3.3 million compared with a year ago, and diluted earnings were $0.13 per share.
Our improvement on the bottom line resulted mostly from continued strong expense management, and during his comments Joe will provide more information on all this as well as on the encouraging gross margin gains versus the first quarter. I would like to emphasize that we increased our net income while continuing to make substantial investments in key areas to build for future growth, like our international business, NanoKnife, and our R&D pipeline.On the top line, our second quarter results were affected by the sustained challenging operating environment that we faced during our first quarter as well as the effects of the transition to a single U.S. vascular sales force initiated at the start of the first quarter. We did begin to see some signs of market stability in certain segments during the period, although overall I would characterize the market and relating pricing as generally being soft . Our expectation is that with a gradual improvement of the economy, and the labor market, procedure volume growth will recover. We do expect markets, however, to remain very competitive, and that innovation, a competitive cost structure, and organizational efficiency are key attributes for strong and profitable growth. In our remarks last quarter we indicated that the sales force transition would take 6-9 months to fully implement. Since initiating the creation of a unified vascular sales force at the start of Q1, we have focused on fully training our reps on all the company's vascular products and allowing them to build the customer relationships necessary to achieve and sustain a high level of productivity. To further strengthen our sales operations, we have increased marketing as well as corporate sales support. We are continuing to build momentum in our sales force effectiveness and we expect to continue to see our growth rate accelerate as the second half of the year progresses. Read the rest of this transcript for free on seekingalpha.com