Direct operating expenses within the Professional Services Division were flat as lower volumes and headcount reductions at NDeX were offset by the growth in operating expenses at DiscoverReady resulting from increased sales. Selling, general and administrative expenses increased 3.1% on a year-over-year basis to $16.2 million. Once again, a modest decrease in expenses at NDeX was offset by the additional expense associated with the increased sales force and investments in DiscoverReady. Excluding the impact of fair value adjustments and impairment charges, total Professional Services Division operating expenses as a percentage of division revenues was 88.6% for the quarter, up from 85.4% in the third quarter of 2011. The increase in operating expense was the result of negative operating leverage due to the revenue declines at NDeX, substantially offset by stronger revenue at DiscoverReady.

Business Information Division Results

The Business Information segment provides products, data and certain services through subscription-based products and a variety of media, including court and commercial media, weekly business journals and the Internet. Our Business Information segment operates specialized information services covering legislative and regulatory activities and provides transcription and media monitoring services.

Business Information Division revenues for the third quarter of 2012 were $18.3 million, a 2.8% decrease from $18.8 million in the third quarter of 2011. The decline in revenue reflected lower Public Affairs Intelligence Group (PAIG) revenue, offset by modestly higher public notice revenue. This is the second consecutive quarter of year-over-year public notice revenue growth.

Total operating expenses within the Business Information Division were $16.5 million during the third quarter of 2012, down 3.8% from last year. The reduction in expenses reflected the continued cost control efforts of the Business Information management team. For the third quarter of 2012, direct operating expenses decreased 4.5% to $6.9 million while selling, general and administrative expenses for the division declined by 3.0% to $8.1 million.

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