And, with that, I’ll turn it back over to Rick Smith, our CEO.Rick Smith Thanks Dan. Okay. I think the interesting story this quarter particularly is about cash. We generated almost $5 million in cash and we’ve announced in addition to the $12.5 -- $12.5 million stock buy-back we just completed that we’re beginning another, up to $20 million cash buy-back. Revenues for the quarter were $21.2 million, up 11% over last year and we saw our TASER X2 that we announced this quarter and we just began shipping in the last two weeks generated $1.4 million of sales in the quarter. Gross margins improved to 57.7%, but the real impressive figure here in my line and a lot of credit goes to Doug Klint and his team that run our Hardware Operation. The margins in our core electronic control business were 63.8%, before you take on the data center operations and software maintenance. Operational costs to breakdown to 57.7%. So a lot of the operational focus on tuning our business unit-by-unit, I think is paying off as we seize operational efficiencies. SG&A down about 10% over last year, again a lot of focus on the cost controls. R&D down 8.6% over the same period last year and anytime, I talk about R&D, I also like to point out, we are getting more out of R&D now than we ever have even though our spend level is down. The TASER new development process has really been refined over the past 12 months. The X2 was developed, frankly, for a fraction of the cost that it took us to develop the X3 a few years ago and the variable cost of goods of our product is dramatically lower than the X3. The quality is -- and reliability is higher than anything we have ever built.
The process changes we’ve made, I cannot overstate how important they are. I think really as we move from 2003 to the present, we went from a small company to a very small entrepreneurial engineering team. As we scaled, we had hiccups and some missteps along the way but I think we’ve now really hit our stride where I would say we’re getting world class engineering team and process that’s able to take the voice of the customer, ingest it, convert it into products, make sure we go through a world-class validation quality and testing and design verification program and bring those products to market. So that is going to be one of the key core competencies of this business allows us to create shareholder value over the long-term.Read the rest of this transcript for free on seekingalpha.com