To facilitate a comparison between the reported periods, the company has presented both GAAP and non-GAAP financial measures. GAAP financial measures include expenses related to non-cash compensation, changes in the fair value of warrants, severance costs and the benefit from the sale of certain state income tax benefits derived from net operating losses. Operating income, net income and diluted income per share have been adjusted to report non-GAAP financial measures that exclude these items. These non-GAAP measures are provided to enhance investors' overall understanding of the company's current financial performance and the company's prospects for the future. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute or superior to GAAP results. Reconciliation between GAAP and non-GAAP financial measures is included in the earnings press release issued earlier this afternoon.I would now like to turn the call over to Jesse. Jesse? Jesse Sutton Thanks, Stephanie. Today, I'll start my remarks with some highlights and an overview of our performance in the third quarter. Mike will then review our financial results. I'll then conclude with a recap of our product slate for the fourth quarter and the holiday season, and then we'll open the call up for questions. Our third quarter came in about as expected, as retail conditions for interactive entertainment remained challenging amid the typical summer seasonal slowness. Our Zumba Fitness products continued a strong performance, ranking among the top interactive dance and fitness titles. Overall, the Zumba Fitness franchise has now sold over 8 million units and maintained its standing as the second largest fitness franchise in the entire video game industry, and is also the best-selling fitness franchise on Kinect. We reported revenue of $9.1 million compared to $19.5 million in the third quarter last year. The year-over-year decrease is impacted by industry-wide decreases in retail sales attributable to the end of life cycle for several gaming platforms, including the Nintendo Wii and DS. As a result, non-GAAP earnings per share were a loss of $0.09 compared with non-GAAP income of $0.03 a year ago.
Looking ahead, we are very excited about our holiday release slate, beginning with the formal introduction of NBA Baller Beats tomorrow and the launch of Mini Putt Park on zynga.com last week. We are optimistic about the opportunities for growth in the dynamic interactive entertainment industry.I would now like to pass the call to Mike Vesey, our Chief Financial Officer, to provide a financial review of our third quarter results. I will then discuss our holiday release schedule. Mike? Michael Vesey Thank you, Jesse. I'll begin by recapping our results for the third quarter and close with some comments about our outlook for the full year fiscal 2012. As is our custom, I use non-GAAP results when discussing our financial results. Revenue for the 3 months ended July 31 was $9.1 million, down from $19.5 million reported in the third quarter last year. The decrease is primarily due to decreased sales in the U.S. attributable to the slow retail market for video games, the late life cycle for the Nintendo Wii and DS platform, and some changes in timing of our Zumba Fitness releases in Europe over the year. International sales in the third quarter were $2 million or 22% of revenue compared to $5.3 million or 27% of revenue in the third quarter of fiscal 2011. The decrease reflects the change in timing of the release of our Zumba Fitness products in Europe. In 2011, we released Zumba Fitness for the Wii in our second fiscal quarter. However, its best-selling quarter was the third fiscal quarter of 2011. Comparably, in fiscal 2012, we released Zumba Fitness 2 in our first fiscal quarter for the holiday, with larger initial order quantities due to its track record. Total revenue from Zumba Fitness products accounted for approximately 79% of sales compared to 80% in the same quarter a year ago. Read the rest of this transcript for free on seekingalpha.com