But particularly noteworthy, is that while we remain focused on driving topline revenue, a revenue growth we experienced along with the margin expansion allowed us to absorb incremental investment in our business, while at the same time, remaining cash flow positive and profitable on both the GAAP and non-GAAP basis.This marks the 11th consecutive quarter that we have been either cash flow positive and/or profitable on a non-GAAP basis. We continue to maintain a healthy cash position as we existed the quarter with $31.3 million in cash, up $3.1 million from year end 2011. Topline revenues of $11.7 million were up 21% over the prior year quarter and what is traditionally our second slowest quarter of the year due to the seasonality in our business our Domestic Kerastick revenue increased 22% versus the prior year quarter. This was our 27th consecutive quarter of year-over-year Domestic Kerastick volume growth. We continue to see Kerastick volume growth in both our existing customer base and new customers. We also had another strong BLU-U performance with 66 units sold, up 18% versus the prior year quarter. Over the first six months of this year we have sold a 180 BLU-U’s, up 50% over the first half of last year. In addition, we placed another 17 units into physician practices during the quarter on our BLU-U evaluation program, for a total of 83 units either sold or placed on the evaluation program for the quarter. We existed the quarter with 37 evaluation units in the field, compared to 21 [evalu] units in the field at the end of the second quarter last year. As a reminder, we historically closed 90% of the evaluation units that we replaced in physician practices once the evaluation period is up. As most of you are aware, we have a razor-razorblade business at BLU-U and Kerastick. New BLU-U customers provide us with opportunities to generate new incremental volume on Kerastick, which is the key to driving topline growth.
Shifting to our clinical development programs, as we previously announced we completed enrollment in April on our Phase 2 clinical trial studying the broad area short drug incubation or BASDI method of utilizing Levulan Kerastick and BLU-U for the treatment of AKs on the face and/or scalp. We enrolled 235 patients in the study and we expect to have preliminary results available by the end of the year.Over to both safety and efficacy, we are following these patients for six months to investigate the potential for the reduction in AK occurrence and the treatment areas with Levulan in combination with BLU-U. Also in the quarter we completed enrollment of a pilot Phase 2 clinical trial studying the safety and efficacy of treating AKs on the upper extremities. This study enrolled 70 patients at three clinical sites. We expect to have preliminary results available by the end of the third quarter. Our goals with these studies are to seek FDA approval in order to expand our current approved label, which when once approved we believe will allow us to again more rapid market penetration. We continue to make progress in our next-generation Levulan project, with the goal of having a candidate chosen by year end to moving the product development with the ultimate goal of improving efficacy and shortening the overall Levulan PDT treatment time for AKs versus our current therapy. This new product if successful will also allow us to enter the international markets with the product that will have patent protection. For the remainder of the year we intend to build upon our strong first half performance with the focus on increasing revenues and further advancing of our commercial and development projects to expand our Levulan PDT franchise. While we expect the traditional seasonality to play factor in our third quarter results, which is historically our slowest quarter of the year, we believe we are on track for strong second half of the year, which has in the past represented 53% of our total annual U.S. Kerastick volume. Read the rest of this transcript for free on seekingalpha.com