Please note that some of the information to be discussed today includes non-GAAP financial measures as defined in Regulation G. The most directly comparable GAAP financial measures and information reconciling these non-GAAP financial measures to AsiaInfo-Linkage’s financial results prepared in accordance with GAAP are also in AsiaInfo-Linkage’s earnings release which has been posted under the Investor Relations section of AsiaInfo-Linkage’s website www.asiainfo-linkage.com.Please note that the company does not intend to nor is it obligated to disclose any developments related to the receipt of non-binding "Going Private" proposals while this process is ongoing, and the company will not comment on this progress during this call. A special committee continues to work with both our financial and legal advisers in taking the best course of action for our investor base There can be no assurance that any definitive offer will be made, that any agreement will be executed, or that this or any other transaction will be approved or consummated. Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in US dollars. I will now turn the call over to AsiaInfo-Linkage's President and CEO, Steve Zhang. Please go ahead, Steve. Steve Zhang Hello, everyone, and thanks for joining us today. In the second quarter of 2012 we met both our top line and non-GAAP EPS guidance, recording net revenue of $124 million and non-GAAP EPS guidance of $0.26. That represented revenue growth of 13% year over year despite challenging macro conditions. Demand for our services remains strong, particularly among our three main telecom customers, as developments in 3G and broadband continue to drive spending across the sector. The focus remains squarely on acquiring greater customer insights as China's carriers look to leverage and monetize their enormous experience of data traffic. We are well-positioned to help our customers do exactly that as our products can create traffic management platforms through which our clients can better understand their data flow and the user characteristics among other key verticals. Armed with such information, our clients can optimize our billing strategy.
I will now turn each of the three main carriers. For China Mobile, we signed a total of 15 NG-BOSS 3.5 upgrade contracts by the first half of this year and target to complete contract signings for three remaining provincial clients by the end of the third quarter.We are currently working closely with China Mobile regarding NG-BOSS 4.0 functional specifications, which we plan on completing in the third quarter and expect to begin contract signings in the fourth quarter of this year. In total this will be a large project since the new upgrades will include several new functionalities. For example, NG-BOSS 4.0 will enable more efficient retail shop management, a real-time user notification, for example, when certain data thresholds are met. Moreover, most of the carrier's retail activity will be able to move from brick-and-mortar shops to its online platform. In the second quarter we were shortlisted for new China Mobile OSS project, which should move to the Request for Proposal stage in the second half of this year. We are excited to have the opportunity to provide a broader range of high-quality services and software to China Mobile as we maintain our close business relationship with China's largest mobile phone operator. For our China Unicom account, we continue to work on the implementation of our BSS Convergence software system upgrade for Unicom's northern six provinces projects. In the second quarter they successfully completed system implementations for two more provinces and plan to bring the remaining two provinces online by early August. This has been a significant implementation project for us and we have had a large team of engineers focused on delivery over the past year. Also for China Unicom, we are working with their head office to centralize all of their IT systems to allow for more management of their retail channels, including all their third-party channels at the headquarter level. Starting in the third quarter we expect to sign billing and CRM upgrade contracts to satisfy new headquarter-mandated upgrade in this area. We are also in the trial stage to develop China Unicom's OSS systems, specifically broadband and fixed line services. This is a new initiative and represents a market area that we plan to invest more as we continue to expand our business with China's three telecom carriers. Read the rest of this transcript for free on seekingalpha.com