As you've seen from today's press release, there is a growing level of interest and excitement for our Magellan Robotic System, as a result of positive growing and clinical experience in Europe and the progress we're making in the U.S. with our pending 5-PenK application.

In the first quarter revenues were $4.7 million which is down 12% from a year ago period. We shipped three systems, all in the U.S., two Sensei systems and one vascular research system and recognized revenue on four systems in total. As is the case for many companies doing business in Europe, the economic environment in that region has been challenging. Not surprisingly this is resulting in hospitals taking a more careful view of their capital investments.

We are experiencing longer sales cycles as hospitals consider the clinical and economic benefits for all capital outlays. Further, capital sales cycles have always been about 6 to 18 months even in the best of times. In spite of this we continue to see strong clinical interest in our Magellan system, and we are engaged with several hospitals to develop deal structures that address their economic needs and allow them to complete their internal approval process.

We continue to anticipate the completion of multiple deals over the coming quarters. Pete will provide more color on the first quarter financial results in a few minutes.

I'll start with a review of our vascular business. As we discussed in the past, flexible robotics in vascular applications is a key growth driver for the business. And we believe it will revolutionize the way endovascular procedures are performed. Our initial focus, the peripheral vasculature, presents a significant market opportunity one that we believe is anywhere from five to seven times larger than for electrophysiology. Peripheral vascular disease affects an estimated 27 million patients worldwide according to published industry studies.

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