Before we begin, please go to Chart 2. During this call, we may be making forward-looking statements including our outlook and expectations for our industry in general, estimated revenue and earnings for the third quarter of 2012, certain financial operating metrics, the timing and the introduction of new products and technologies, anticipated spending patterns by some of our customers, and expected sales levels for various product categories. It is important to note that actual results may differ materially from those suggested by any forward-looking statements, which may be made during today's call. For further information in this regard, and for specific examples of risks that could cause actual results to differ materially from these forward-looking statements, please see our recent filings with the SEC.Now, if you go on to Chart 3, Bob and Dave will provide their comments on the quarter results after which, we will open up for questions. Now, over to you, Bob. Robert J. Stanzione Thanks, Bob, and good afternoon, everyone. I'm very pleased to report outstanding June quarter results with record revenues at the high-end of our guidance and earnings above the high-end of our guidance as well as strong bookings, backlog and cash generation. Revenues were up 15% quarter-over-quarter at $349 million and up a remarkable 31% over the second quarter of 2011. Year-to-date, sales are up 22% over the first half of last year, and sequentially, sales are up in all segments and in all regions. Non-GAAP earnings of $0.25 per share were above the upper end of our guidance, a 31% sequential improvement over the first quarter. Year-to-date, non-GAAP EPS is up 10% over last year in spite of the higher tax rates that we're paying. Both U.S. and international sales were up, with domestic sales representing 74% of the total, about the same mix as last quarter.
I'm really especially pleased with our working capital management and the effectiveness of our supply chain in turning out these results. While climbing the steep volume ramp, the teams managed to keep working capital roughly flat by increasing inventory turns to 8.9 from 5.8 a year ago and reducing DSO from 52 to 47. So that's a great job by our operations team.Cash generated from operating activities was at $31 million and we aggressively bought shares again in the quarter, purchasing 1.4 million shares at an average price of $11.21. Dave will provide more details in just a moment. On to Chart 5. The worldwide demand for broadband access continues to be the primary growth driver in our business, and as you can see, the new product introductions that we've made over the past few years are really paying off. BCS revenues of $280million were up significant, posting about 15% sequential and 39% year-over-year growth. Gross margin was down due to a mix shift toward more hardware sales in the network category and the strong growth of the CPE sales. More specifically, we had continued strong sales of CMTS equipment in Q2. However, the mix shifted within this category, with CMTS downstream ports shipped at -- decreasing to just under 76,000, offset by very strong demand for upstream ports as we increased shipments of our new 24U upstream cards. Our E6000 next-generation Cable Edge Router program continues on track and is progressing well toward further lab and field trials in the second half of the year. In BigBand which we now call Edge Media Processing, integration is done and we've had some sizable initial MSP QAM deployments in the quarter. The major highlight of the quarter was the shipments of CPE devices that were up significantly during the quarter at just under 2 million units. At the same time, ASPs in this category also increased, as almost 83% of the shipments were DOCSIS 3.0 capable and we continued to see a sharp increase in demand for a higher value Wi-Fi-enabled devices. Read the rest of this transcript for free on seekingalpha.com