To RSVP, please call or e-mail me using the contact information listed on today's release. With that, I'll pass the call to Joe.Joe E. Kiani Thank you, Sheree. Good afternoon, and thank you for joining us for Masimo's Quarterly Review and Update. We finished the second quarter with 12% year-over-year growth and product revenue, driven primarily by strong performance from our direct business in the U.S. and abroad. We shipped 37,300 new Pulse Oximeters and Pulse CO-Oximeters in the quarter and now estimate our worldwide installed base to be 1,033,000 units. This is up 12% year-over-year and underscores the clinical advantages of our Measure-Through Motion and Low Perfusion Pulse Oximeters and Pulse CO-Oximeters. In addition, we achieved solid increases in adoption of total hemoglobin and acoustic respiration rate monitoring, which out-labels[ph] 2 major long-term growth engines. In the second quarter, SpHb sales grew 48% versus the year ago period, and rainbow Acoustic Monitoring grew by 600%. We are happy to announce today the acquisition of PHASEIN, a Swedish developer and manufacturer of ultra-compact mainstream and sidestream capnometers, multigas analyzers and handheld capnometry solutions. The acquisition of PHASEIN's Technologies complements our breakthrough innovations for patient monitoring, with their portfolio of products ranging from OEM solutions for external plug-in-and-measure gas analyzers and integrated modules to handheld devices. With multiple measurements delivered through either mainstream for intubated patients or sidestream for unintubated patients, our customers can now benefit from CO2, N2o and O2 and anesthetic agent monitoring in many hospital environments, such as operating rooms, procedural sedation and ICUs, as well as the EMS environment. This acquisition fits within Masimo's growth strategy, which is to build a durable recurring revenue franchise with breakthrough, user-friendly, patent-protected technologies that improve the practice of medicine, advance the standard of care and reduce health care costs. In July 2011, American Society of Anesthesiologists revised its standards to say that during moderate or deep sedation, the adequacy of ventilation should be evaluated by continual observation of qualitative clinical sign and monitoring for the presence of exhaled carbon dioxide, or CO2. While we are working with ASA to expand the standard to include rainbow Acoustic Monitoring, because we know that existing rainbow Acoustic Monitoring technology still enjoys many advantages to capnography, we believe that it will be good to have both solutions available to our customers.
In a few minutes, I'll provide additional perspective on our business and comments regarding our overall growth strategy. But first, Mark will review the second quarter financial performance. Mark?Mark P. de Raad Thank you, Joe, and good afternoon, everybody. As Joe just noted, Masimo's second quarter 2012 total revenue rose 12% to $122.8 million versus $109.6 million in the year ago period. Second quarter product revenue also rose 12% to $115.3 million, reflecting primarily higher sensor sales to our hospital customers. This increase occurred despite movements in foreign exchange rates that reduced our year-over-year revenue by approximately $1 million. In addition, Masimo Semiconductor, which we acquired late in the first quarter of 2012, added approximately $800,000 to the second quarter product revenue. Rainbow product sales grew 7% in the second quarter to $9.7 million, as strong growth in SpHb, RAM and other rainbow measurements was partially masked by a drop in Rad-57, SpCO and SpMet sales, which continued to be impacted by municipal budget cutbacks across the country. In fact, excluding Rad-57 product sales, total rainbow revenues in the second quarter actually grew 22%. Also encouragingly, we saw nearly 50% growth in SpHb sales and more than 600% year-over-year increase in RAM revenue, indicating increasing interest in this novel rainbow technology. Our worldwide end-user or direct business, which includes sales through just-in-time distributors, grew 16% in the quarter to $98.4 million, versus $84.7 million 1 year ago. In total, our direct business represented 85% of product revenue, versus 83% in the year ago quarter. Read the rest of this transcript for free on seekingalpha.com