Cash and cash equivalents and marketable securities totaled $317.6 million as of the end of the third quarter of 2012, an increase of $145.9 million compared to the end of the fourth quarter of 2011. Net cash flow from operating activities was $16.6 million, which combined with capital expenditures of $4.7 million, resulted in free cash flow of $11.9 million in the third quarter of 2012 compared to free cash outflow of $2.1 million in the third quarter of 2011.Palmisano concluded, “During the fourth quarter, we will continue to make investments to accelerate foot and ankle growth, improve customer satisfaction in our Ortho-Recon business and increase cash generation capabilities. We also expect continued progress on our inventory reduction initiatives and accelerating U.S. foot and ankle sales productivity in 2013. In addition, our recently completed convertible debt offering provides us with significantly increased flexibility to pursue internal and external development opportunities that we believe will help us continue to drive the positive transformation of our business for the remainder of this year and beyond.” Outlook The Company continues to anticipate full year 2012 net sales to be in the range of $476 million to $485 million and has increased its as-adjusted earnings per share excluding stock-based compensation guidance to be in the range of $0.34 to $0.40 per diluted share from the previously communicated range of $0.32 to $0.36. The Company’s earnings target excludes non-compete and transition costs associated with converting a major portion of independent foot and ankle territories to direct, costs associated with the previously announced restructuring, possible future acquisitions, other material future business developments, non-cash stock-based compensation expense, costs associated with the Company’s DPA (including the associated independent monitor) and the U.S. government inquiry relating to the PROFEMUR ® hip products, non-cash interest expense associated with the 2017 Convertible Notes, non-cash mark-to-market derivative adjustments, loss on termination of interest rate swap, and the write-off of unamortized deferred financing charges. As noted above, the Company’s earnings target excludes the impact of non-cash stock-based compensation charges. While the amount of the non-cash stock-based compensation charges will vary depending upon a number of factors, the Company currently estimates that the after-tax impact of those expenses will be approximately $0.18 per diluted share for the full year 2012. Therefore, the Company now anticipates its full year 2012 as-adjusted earnings per share including stock-based compensation to be in the range of $0.16 to $0.22 per diluted share.