The press release announcing our second quarter results, as well as the reconciliation of management business outlook for 2012, using non-GAAP financial measures as compared to the most applicable GAAP measures, are available on the Investor Relations section of our website at

All results and expectations we review are on a non-GAAP basis unless otherwise described as GAAP. Our Non-GAAP financial measures exclude stock-based compensation and related payroll tax expenses, amortization of the tangible assets and merger-related expenses associated with the company's acquisition activities. Also please note that our earnings per share amounts are on a fully-diluted basis.

Please note that statements made during this call that are not historical facts may be forward-looking statements within the meaning of Securities Act of 1933 and the Securities and Exchange Act of 1934. These forward-looking statements do not constitute guarantees of future performance and are subject to a variety of risks and uncertainties that could cause our actual results to differ materially from those anticipated. A discussion of these risks and uncertainties can be found in our recent filings with the SEC. Investors should not place undue reliance on these statements, which are current only as of the date they are made, and we disclaim any obligation to update them.

With that, I'd like to turn the call over to Andy.

Andrew D. Ory


Thank you, Brian, and good afternoon, everyone.

I'll briefly review the results for the quarter and then share some thoughts on what's happening with our business and what we see as the most significant drivers for our growth.

Revenue in the second quarter were $67.6 million. Gross margin was 83%, unchanged from last quarter. Operating margin was 21%, and non-GAAP EPS was $0.13 per share. Cash from operations was $23.6 million, and we ended the quarter with $401 million in cash, unchanged sequentially, despite utilizing approximately $21 million in cash to acquire IPTEGO during the quarter.

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