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With that said, I’ll turn the call over to Chief Executive Officer, Vic Viegas. Vic?Vic Viegas Thanks Jennifer and thanks for joining us this afternoon. Our revenues for the second quarter were 6.5 million lower than anticipated. However, due to our continuing cost management efforts, our net loss of 2.2 million or $0.08 per share was within our expected range. Revenues from royalties and licenses were roughly flat year-over-year as the number of phones infringing on Immersion's technology continue to accumulate, deferring our ability to fully participate in the dramatic growth of haptics within smartphones and applications. At the same time, we demonstrated continued progress during the quarter with our higher ASP generating rework technology now shipping in Samsung's flagship Galaxy S III phone. The launch of new haptic enabled titles from top tier applications developers, the cultivation of new standard and high definition haptics compliant components with our ecosystem partners and growing momentum for haptics within the automotive space. In a few minutes, I will discuss our recent business development and provide and update regarding our guidance. But first, I'll ask Paul to provide a more detailed review of our financial results for the second quarter. Paul? Paul Norris Thanks Vic. Revenues in the second quarter of 2012 were $6.5 million down 3% compared to revenues of 6.7 million in the year ago period. Revenues from royalties and licenses of 5.9 million were roughly flat with the second quarter of 2011. Revenues from product tails were 344,000 compared to product tails of 546,000 for the second quarter of 2011. While revenue mix per line of business is expected to fluctuate on a quarterly basis due to seasonality pattern, in the second quarter of 2012, a breakdown by line of business as a percentage of total revenues was as follows. 47% from mobility, 27% from gaming, 13% from medical, 7% from auto and 6% from chip and other. These percentages are based on total revenues including revenues from royalty and licensing, product tails and development contracts.
Gross profit was $6.3 million or 97% of revenues compared to gross profit of $6.4 million or 96% of revenues in the second quarter of 2011. Cost of revenues in the second quarter was $214,000 compared to $247,000 in the second quarter of 2011. Excluding cost of revenues total operating expenses were $8.6 million in the second quarter of 2012 compared to 7.5 million in the second quarter of 2011. This includes non-cash charges related to depreciation and amortization of $554,000 and stock based compensation of 818,000. Excluding these non-cash charges,OpEx was $7.2 million during the quarter compared to 6.0 million in the second quarter of 2011. OpEx in the second quarter of 2012 also included litigation related costs of $1.5 million. We expect litigation expenses to trend slightly above this level during the second half of the year and are modeling OpEx excluding non-cash charges to be in the 7.5 to $8 million range per quarter moving forward. As you know, in addition to normal GAAP metrics, we use a metric called adjusted EBITDA to track our business. We define adjusted EBITDA as earnings before interest, taxes, depreciation and amortization less share based compensation. Adjusted EBITDA in the second quarter of 2012 was a loss of $938,000 compared to positive adjusted EBITDA of $442,000 in the second quarter of 2011. Net loss for the second quarter of 2012 was $2.2 million or $0.08 per share compared to net loss of $1.3 million or $0.05 per share in the second quarter of 2011. Our cash portfolio including cash and investments was $52.4 million as of June 30, 2012 compared to 56.3 million at the end of 2011. Cash use during the quarter was $5.2 million. This primarily reflects expenditures on our patent litigation as well as activity within our stock repurchase program. In the second quarter we repurchased 387,288 shares of our common stock at an average cost of $5.29 per share for a total of $2.0 million. As of June 30, 2012, we have 23.1 million remaining under our authorized stock repurchase program. Read the rest of this transcript for free on seekingalpha.com