Gross margins and net margins for this first nine months of fiscal 2012 were $11.4 million and 3, excuse me, 11.4% and 3.2%, respectively, compared to 11.9% and 5.4%, respectively, in the same period in fiscal 2011.

In highlighting our Magnesium segment, we saw slightly improve conditions in pricing as compared to the comparable quarter in fiscal 2011. Total revenue for the quarter was approximately $26.5 million, as compared to $25 million recorded in the third quarter of fiscal 2011.

Gross margin improved to 3.1% in the third quarter, up from 2.5% in the third quarter of fiscal 2011 and up sequentially from 2.6% in the prior quarter. We believe gross will continue to improve as we integrate our acquisition and increase volumes, during the current period we continue build inventory in anticipation of rising prices and increasing demand.

With the recent increase in spot prices rising in the past two months to 3400 FOB China, we believe we will be rewarded in the future for our inventory, as well as our prepaid expenses and we anticipate a firming in demand as we move through the remainder of the calendar year.

Our Basic Materials segments saw a sharp decline in revenue which totaled $10.6 million, declining by $9.5 million compared to same period in fiscal 2011. The decline in revenues was mainly a result of declining sales at our CDI Beijing subsidiary compared to the same period in fiscal 2011. And this is due to reduced demand from urban infrastructure expansion caused by tightening of credit in China.

In our Consulting segment this quarter, we generated a small amount of recurring revenue. However, we have seen a number of positive developments in this segment which I will highlight later in this call.

While our efforts in our commodity distribution business in the Americas has experienced a number of challenges, our team is on the ground there and we are working diligently to begin to deliver on the rich potential of this business. We will continue to deploy our resources in the Americas to build inventory in our Magnesium segment in anticipation of increases in demand.

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