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Before I begin, let me make this brief cautionary statement. Comments made today regarding financial estimates and projections and any other statements addressing Management's intentions and expectations regarding the Company's future performance are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. As such, these comments are subject to risks and uncertainties which could cause actual results to differ materially from those projected.Additional information about various factors that could cause actual results to differ from those projected are contained in the news release that we issued this morning, and in the Company's Form 10-K for the year ended December 31, 2010. In addition, the financial and statistical information that will be reviewed during this call is addressed in greater detail in today's press release, which is posted in the News and Investor Relations section of our Web site, www.deluxe.com, and was furnished to the SEC on the Form 8-K filed this morning. In particular, any non-GAAP financial measures are reconciled to comparable GAAP financial measures in the press release. Now, I'll turn the call over to Lee. Lee J. Schram Thank you, Jeff, and good morning, everyone. In the midst of a continued sluggish economy Deluxe delivered another solid quarter. Revenue grew almost 4% excluding the one-time $25 million contract settlement in the prior year quarter. Small businesses services revenue grew 10% excluding the portion of the contract settlement recorded in this segment in the prior year and grew over 6% when also excluding PSPrint in the current quarter. This quarterly growth rate is the strongest we have reported since we acquired NEBS in 2004. Checks and forms both performed well against our expectations, and marketing and other services revenues grew 26% over the prior year. The revenue shortfall against the high end of our expectations was driven primarily by financial services customer acquisition and regulatory compliance services as financial institutions delayed decisions and roll outs as well as slower acceleration of SBS, search engine marketing services.
Adjusted diluted earnings per share from continuing operations exceeded the high end of our outlook driven by favorable product mix and lower average shares outstanding as we opportunistically repurchase $6 million of shares to help offset dilution from employee plans. Excluding the one-time $0.31 per share contract settlement in the prior year quarter, adjusted diluted EPS from continuing operations grew 15% over the prior year. We continue to invest in brand awareness to help better position our marketing and other services offerings and drive future revenue growth. We also advanced our process improvement in cost reduction initiatives while driving strong operating cash flow as we continue to transform Deluxe. In a few minutes I will discuss more details around our recent progress and next steps, but first, Terry will cover our financial performance.Terry Peterson Thank you, Lee. Earlier today, we reported diluted earnings per share for the third quarter of $0.71, which included $0.07 per share from restructuring and transaction-related costs. Excluding these costs, adjusted EPS of $0.78 was $0.01 favorable to the upper end of our previous outlook. Favorable product mix and lower average shares outstanding drove better than expected EPS performance. The restructuring and transaction-related costs were primarily driven by infrastructure consolidations, employee severance charges in PsPrint acquisition. EPS from continuing operations in the third quarter of 2010 was $0.99 and included a one-time contract settlement gains of $0.31. Revenue for the quarter came in at $355 million and grew almost 3% on a sequential quarterly basis versus the prior year, consolidated revenue was up almost 4% excluding the one-time contract settlement gain of $25 million in the prior year. Small business services revenue of $214 million grew 4% versus last year on a reported basis that grew 10% excluding the portion of the contract settlement recorded in this segment in the prior year. We recently acquired PSPrint business at nearly $8 million of revenue in the quarter. While we continue to operate in a weak economic environment we did also delivered growth in marketing and other services. Our Safeguard distributor channel in Canada. Read the rest of this transcript for free on seekingalpha.com