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Second, our results released earlier today, as well as our discussion on this call, include non-GAAP adjusted pro forma information, which exclude, as applicable, noncash items and items that impact comparability. Examples of such items include amortization, equity-based compensation and discrete tax items and the tax effect of all non-GAAP adjustments. Depreciation expense, while a noncash item, is included in adjusted pro forma operating results as a proxy for capital expenditures to demonstrate recurring cash-based earnings. Adjusted pro forma combined company information assumes the Sonic Solutions acquisition and the Roxio consumer software disposition were both effective on January 1, 2010. Adjusted pro forma reconciliations for historical results, including Sonic Solutions and excluding the Roxio consumer software business, are in our press release.We have presented and are discussing adjusted pro forma combined company information because this is how we have and will evaluate our business. We believe that this presentation may be meaningful to our investors in analyzing the company's results of operations. This presentation is not intended to be a substitute for our financial results, presented in conformity with generally accepted accounting principles in the United States, and investors and potential investors are encouraged to review the reconciliation of adjusted pro forma financial measures included in our earnings press release. And as the final piece of housekeeping, the webcast of this conference call will be available on our Investor Relations webpage at www.rovicorp.com. Now I would like to turn the call over to Peter. Peter C. Halt Thanks, Chris. Good afternoon, everyone. Hopefully, you've had a chance to see the press release we issued today with our results for the second quarter ended June 30, 2012. As we disclosed a couple of weeks ago, the second quarter was a disappointment to us. Adjusted pro forma revenues were down approximately $21 million or 12% from the second quarter of 2011, primarily due to a drop in revenues in our CE vertical. CE was down this quarter by $21 million or 24% from the second quarter of 2011.
As we said when we announced preliminary results, softness in CE was primarily due to anticipated declines in ACP revenues, which we've been talking about for a number of quarters now. Remaining decline was mostly due to the lack of new CE licensing deals during the quarter. But we had hoped to sign at least one of the CE manufacturers that is out of license. It did not happen in the quarter for reasons Tom will discuss. By comparison, in the second quarter of 2011, we've benefited from entering into a license agreement with Toshiba.Our CE products were also adversely impacted by the macroeconomic factors that appears have been headwinds for many companies involved with the CE industry. Many device manufacturers reported a year-over-year reduction in royalty-bearing unit sales, and some of our CE partners have been incorporating next-generation guides more slowly than we anticipated. Additionally, activations for connected devices are not meeting either our expectations or, we understand, expectations of the device manufacturers. We believe the lower-than-expected activations also reflect the macro environment as CE device makers are not currently making the kind of investments in marketing that would encourage consumer awareness and activation. As a result, our anticipated advertising revenues were impacted by the resulting smaller-than-anticipated guide footprint in CE. Additionally, DivX revenues, while slightly up on a year-over-year basis, did not grow as anticipated. DivX growth was impacted by the CE industry's headwinds, as well as by delays in our rolling out new content creation solution software. We are actively addressing such delays as Tom will discuss. Read the rest of this transcript for free on seekingalpha.com