Welcome to the Masimo Corporation First Quarter 2010 Earnings Conference Call. The company’s press release is available at www.masimo.com. All lines have been placed on mute to prevent any background noise. After the speaker’s remarks, there will be a question-and-answer session. (Operator instructions). I am now pleased to introduce Sheree Aronson, Masimo Vice President of Investor Relations.

Good afternoon. Joining me are Chairman and CEO, Joe Kiani and Executive Vice President, and CFO Mark de Raad who will each make prepared remarks, and then take as many of your questions as time permits. Please note this call contains forward-looking statements. While these forward-looking statements reflect Masimo’s best current judgment, they are subject to risks and uncertainties that could cause our actual results to vary. Risk factors that could cause our actual results to differ materially from our forecast are discussed in detail in our filings with the SEC. You’ll find these in the Investor Relations section of our website. With that, I will pass the call to Joe Kiani.

Thank you, Sheree and thank you, ladies and gentlemen for joining us today. Masimo delivered strong first quarter results with total revenues up 15%. Product revenues also rose 15% including a 71% increase in Rainbow revenues. We also achieved a solid 34% increase in shipments of Masimo SET and Masimo Rainbow SET units. These results prove once again the superiority of our technology and strength of our mission, which is to improve patient outcomes and reduce to cost of care by taking non-evasive monitoring to new sites and applications. Our first quarter progress can be summed up by four key points. First, our core SET business outpaced both market and competitive growth with a 13% year-over-year rise in revenues. This performance signals additional revenue share gains by Masimo. Coupled with our strong OEM Board and Radical-7 and Rad-87 shipments, it makes clear that hospitals are increasingly turning to Masimo SET Pulse CO-Oximetry not only for deployment in acute care, but also in the general ward where our patients SafetyNet monitoring system connects care givers to patients resulting in improved patient safety and reduced cost. Second, our Rainbow platform continued to advance with year-over-year sales up 71%. We experienced growth in both licensing and sensor revenues and in general are happy with the progress in all Rainbow categories. The only exception are RAD-57 revenues, which were down slightly due to cannibalization by our OEMs specifically in Medtronic Physio-Control and ZOLL defibrillators with Rainbow and continued EMS market weakness tied to local and municipal budgets. Importantly, in EMS market, our year-over-year Rainbow SpCO and SpMet unit sales grew by over 75%. Unfortunately because our license fees are significantly lower than our standalone Rad-57 unit ASPs, total revenues were slightly down year-over-year. During the quarter, we also prepared for the launch of two…

Thank you, Joe, and good afternoon everyone. First quarter 2010 total revenues rose 15.5%, compared to the same prior year period to $98.8 million. This included 15.3% rise in product revenues to $85.9 million and a 17.3% increase in royalty revenues to $12.9 million. The increased year-over-year royalty revenues were based on Covidien’s higher than expected Q1, 2009 royalty payments which we received in Q2, 2009 and have factored into our Q1, 2010 estimated royalty revenues. Favorable year-over-year foreign currency exchange rates added approximately $1 million to the first quarter international revenue totals. Note that this positive foreign exchange benefits revenue was offset to a large extent by approximately $600,000 in increased year-over-year operating expenses. As Joe indicated, product revenue growth was driven primarily by Masimo SET revenues, which rose approximately 13% to $80.5 million in the quarter as we continue to extend our reach into more hospitals worldwide. First quarter 2010 revenues generated from our end user or direct business, which includes our sales through our just-in-time distributors, were up approximately 14% to $68 million and represented 79% of total product revenues. OEM revenues made up the remaining 21% at $17.8 million and represented a strong year-over-year increase of nearly 19%. This strong increase is due we believe to some pent-up demand carried over from 2009 and our ability to continue to garner our high percentage of our OEM partners pulse oximetry sales due to hospitals continuing to demand Masimo SET and Rainbow SET technology. First quarter Rainbow revenues were $5.3 million, up approximately 71% compared to the same period last year. The rise reflects higher year-over-year sales of license parameters and sensors offset as Joe mentioned by a significantly lower Rad-57 sales due to the cannibalization by Physio-Control and ZOLL-related products as well as the continued constraints on…

Thank you, Mark. As you all have heard me say many times before, I believe Masimo is still on to the early stage as of executing and exciting long-term growth strategy. We were writing three technology adoption curves. First, Masimo SET Pulse Oximetry and the $1 billion critical share market where we are in the steep part of the S-curve. Second, Masimo SET Pulse Oximetry to general floor also estimated to be a $1 billion market, where we are just beginning to enter what we believe will be a fairly aggressive S-curve. And third Rainbow estimated to be $2 billion market with most measurements just beginning to form the S. this is a tremendous opportunity that we are addressing by continuing to maintain our technology leadership by inventing new measurements and improving our current measurements and establishing a critical math sales force in hospital and alternate care markets worldwide. What inspires and drive the Masimo team to deliver against this objectives is the chance to make a meaningful and lasting impact on patient’s life by providing caregivers the resources they need to make better and faster decisions. We made some important strides in the first quarter, which I’d like to review briefly before opening the call up to your questions. Based on our double digit SET revenue growth, and our 34% year-over-year increase in new driver shipments, we are confident that we grew our share of the Pulse Oximetry market during the first quarter both in the U.S. and internationally. We are seeing better demand not only in acute care, but also in the general floor with the combination of our Masimo SET technology and Patient SafetyNet Monitoring System does capturing the attention of care givers and administrators for its ability to cost effectively enhance response times to patients in…

(Operator Instructions). So, our first question comes from the line of Bill Quirk with Piper Jaffray.

Joe, you had a comment I think it was in your first said prepared remarks talking about expectations for sequential in the year-over-year growth for the balance of the year. Were you referring to the overall business or specifically Rainbow? Thanks.

Both we believe we should continue to enjoy sequential growth as well as obviously stronger year-to-year growth with both SET and Rainbow. Now while the Rainbow may not be happening at 71%. We expect it to be at healthy levels and makes us feel good about the present and the future.

And so just I guess get a better sense Joe, is to the impact of Rad-57 on that metrics during the quarter. Can you help us think in recent rough terms with the overall mix of Rainbow is between sensors and licensees?

Yes. Let me try to do that for you. First of all, our unit sales of Rainbow licenses was up over two times, compared to the same quarter last year, but because some of that now is happening by our OEMs like Medtronic Physio Control and ZOLL. The overall revenue from that business, from that license sale has been slightly down. Our total rainbow center sale have seen a very nice increase again unit wise but again because of the mix that is shifting from the disposables to the Resposable is a reason we saw the kind of growth we have had, otherwise the growth unit wise it was very robust much more than the numbers we gave you for the total revenue growth quarter-to-quarter, year-to-year.

Okay very good, and then last one from me, you guys didn’t touch on it but in terms of the overall 2010 guidance as if you are comfortable with the numbers you have put out after the fourth quarter call.

Okay, let me get to my lawyers (inaudible) to answer your question on that, basically as you know we provided guidance for 2010 in our earnings release issued in February 16, 2010. It is our policy not to update annual guidance on unless they are material developments which cause management to believe there are revenues or earnings per share will be significantly outside the range previously provided. Based on the current available information we are not providing any update to our annual guidance issued in February.

Is there any other if you thought you guys are going to meaningfully exceed or meaningfully miss you would say something. Since you are not saying anything its reasonable to assume that things are generally going to be inline.

I think that’s a good conclusion.

Your next question comes from the line of Tao Levy with Deutsche Bank.

This is actually Imran Zafar in for Tao Thank you for taking my question. Just a follow-on to Bill’s question and I am sorry I am been a little picky here but in terms of your confidence in the sequential growth and in Rainbow over the balance of the year, does that include contribution from RAM and Pronto on the back half of the year and increase in EMS spend. Just trying to get an apples-to-apples sense of how should we think about growth within in the Rainbow portfolio.

It surely does include Pronto and RAM in it, but I would say to you that we will see sequential growth even without those option rates.

Okay and then a little more detail not the non-invasive SpHb launch. Can you just talk maybe even qualitative terms Joe about the interest levels from hospitals; I know you have commented on this past, how is that looking from a qualitative perspective.

It’s looking very good; we have liked what our customers are seeing with the product both its performance and the clinical utility that it’s providing them. We like the increased word of mouth that going around about successful usage of the product and the overall demand for SpHb.

Okay great and then on once you place a the hemoglobin technology in the hospital, those within your current install base, how are the utilization trends tracking in terms of over the last couple of quarters those early adopters, are you seeing an increase in usage within that institution.

I don’t have institution by institution number but what I can tell you is we are getting usage based on the macro level of sensor increase that I alluded to earlier and my own personal contact with the number of customers I have been in contact with. No one has put it back on the shop everyone is using it, in fact they are using more, they want to buy more. So, we are feeling very good especially for a new product that hasn’t had routine usage for it to find its way in normal use day to day it’s very reassuring. Now as I have said earlier we are on the S-curve technology adoption, so we are at the beginning of that. Obviously we are dealing with early adopters, we hope to get to the steep part with the mass market, so I don’t by answering your question I also don’t want you to think that we think everything is perfect, it should be perfect but you can’t tell until you move from earlier adopters to the mass market.

Okay and then one last quick question on procedure volume trends in the quarter. We have seen some conflicting commentary from the procedures on to the Medtech companies, can you just give us some observations on what you saw in the quarter on procedure volumes and what impact right flu season had on sensor volumes because you did post a very good sensor not withstanding a right flu season. Thanks.

Sure, we obviously Q4, of the year is – Q1 of the year is the flu season. I don’t think we fortunately we did not see epidemic swine flu problem like we had worried about but my belief is we did see some seasonal increase in our sensor volume but given the strong drivers that we shift in Q1, I am not expecting that seasonality too cause an issue for us going forward. I don’t know if I am clear but I think we should be able to maintain the growth because of the strong placement of the 37,000 Masimo Rainbow SET units.

Great, thanks so much.

Our next question comes from the line of Sara Michelmore with Cowen and Company.

Joe you mentioned a few times saw it in the press release as well. But just wondering if you can just give us a little more color on what you are seeing in the general word and how that Patient SafetyNet product is driving things. Is it something that you think is going to be a substantial part of the revenue contribution or growth contribution going forward or how should we think about that? Thanks.

I will give you my best answer but it may not be the right answer. My best answer is that we feel we have hit the tipping point with general floor monitoring and we are not yet at the revenue level at the steep part of the S-curve but we certainly are at the demand level and interest level at the steep part of the S-curve. It looks like the combination of the Dartmouth-Hitchcock study showing the value of Patient SafetyNet as well as for Dartmouth and other institutions that have been using it is not only driving I want to say just about every customer that I stay in touch with too long to move into general floor monitoring continuous monitoring which is very exciting but even though once that would have been working with us in past expanding beyond what they thought they were initially going to do for which some of them was okay, we are just going to do post orthopedic surgery or and they are just going, just about every bed in the ward. So, it is a very exciting time. We are actually working hard to keep up with the demand and we don’t want that to ever be an issue but well hopefully I can -- hopefully I am right and the next several quarters and the years we will be able to look back and see that it was really the tipping point.

That’s helpful Joe and then on the OEMs its nice to see you have a good quarter there, seems like it might have been a little bit pent up demand. I mean how sustainable is that trend going forward, you think you kind of, was this a one half quarter or are you back to maybe more normal ordering patterns. Thanks.

Again the best information I have, this is not a one time event. It looks like we are heading towards a good year. Now we have heard from some of our very larger OEMs who economists and alike telling us the second half may not be as strong for them as the first half. So, we don’t I can’t really tell you about Q3 and Q4 but I will tell you its been a combination as you said pent up demand as well as an increase in the percentage of demand within those company for Masimo technology versus competitive technology as more hospitals are seeing the benefit of our technology and asking the OEMs to deliver Masimo by name and specifically demanding Masimo.

Thanks for the color, Joe.

Your next question comes from the line of Matthew Dodds with Citi Group.

Mark for the revenue split, this is the second straight quarter the OUS has gone a lot faster than U.S. and I now you have put resources, can you give us any color if any region is outsized growth versus some of the others and I guess this three I would highlight like Western Europe, Japan and then kind of all other just any color you can provide us on one of those regions?

Well Matt as I have said in the prepared remarks the good news we had double digit growth in every region throughout the world, your question more specifically on which specific region certainly we saw strength our EMEA region, Japan was very strong for us and the we saw a couple of sub-elements of the rest of the world, we had a very nice quarter in Canada and also some activity that we are seeing in Australia.

And do you think a lot of that relates to the expansion you have made in the sales force versus internationally or do you feel the growth internationally is been stronger in terms of plus Masimo market.

While we have -- the investment certainly that we have been making over the last two, three years and continue to expect to make for the rest of the year, this year, we believe is the primary reason we have got today, probably about four times the number of feed on the street that we had in these regions about three years ago. A lot of that hiring was done the early part of last year, so we believe that as we said in the earlier remarks that the investment that we have made and you know this is a business that unfortunately requires a bit of longer sales cycle than most, so we think the investments over the last couple of years are beginning to pay off in all of these regions around the world.

Thanks Mark.

Your next question comes from the line of Peter Lawson with Thomas Weisel.

Hi, Mark, I wonder if you could just comment on the negative manufacturing variances and whether this is going to disappearing in 2Q?

Sure, well, I think if you go back to the prior maybe three or four calls that we have had, we have occasionally mentioned the fact that some of our positive margin movement quarter-over-quarter has been due to favorable manufacturing variances. This quarter, Mark, what we essentially believe is sort of the final major push of our production activity from Irvine down to Mexicali and so as a result there was a bit of a overlapping hiring process that went on in this quarter where we had to hire people in one location and get them transitioned as quickly as possible obviously before we could make the appropriate adjustments at the other locations. So, that’s primarily what generated the event in this quarter and we don’t think its something that will continue.

Thank you, it’s helpful. And then I wonder if you could elaborate on that pricing pressure you talked about in North America, what was responsible for that?

Well, the comment that we made I think was in a reference to 2009, and obviously 2009 the year, we all just came out was an extremely difficult one economically. We had throughout the year the challenge of convincing customers to complete contracts with us in an environment where they were ensure of their financial situation. And so as a result as you can imagine pricing pressure was such that on occasion we entered into certain deals last year at price points that at least historically were lower than what we have seen. As I alluded to in the comments, the good news is we believe that sort of unique economic environment that was precipitating some of those larger than usual pricing adjustments has ended and that we are looking at a much more stable pricing environment going forward.

So, those should roll off this year basically?

Well remember most of those contracts could be contracts anywhere from three, four, five years. So, the impact of any one off pricing deals that we would have done in 2009, those will continue with us for a while. My comments are more in relationship to the new contracts that we would be signing and of course those new revenue streams will be laid up on the building revenue streams from the over 700 long-term sensor agreements that we have today.

Okay. Thank you so much.

Your next question comes from the line of Joanne Wuensch with BMO Capital Markets.

A couple of things, you had commented that the litigation expense was about 800,000 higher than you had expected, anything in particular there?

No, we didn’t say it was higher than expected, we just said it was the reason for the increase year-over-year. Remember we went into this year and actually we went into the back end of last year highlighting the fact that the litigation that we had ongoing at this stage was something was front and center as we looked at our operating expenses and clearly it was risk to our total operating expenses but I wouldn’t say actually the number that we called out as a reason for the increase wasn’t necessarily a surprise to us.

Okay, maybe it was just a surprise to me. My second question has to do with, is it fair to say that the hemoglobin revenue while you won’t break it out is sequentially increasing?

I would say in general that our hemoglobin total revenue levels over the last couple of quarters have been in a fairly consistent range. Some quarters up, some quarters a little bit down but very, very consistent.

And is it that you are still in the new adopters and haven’t gone broader yet? And if that’s the reason what does it take to go broader?

I really believe it’s the transition of customers from disposables which had an ASP over $100 to resposables which have an ASP of about $50, the actual volume is up 400%.

That’s very helpful. Thank you very much.

Your next question comes from the line of Brian Weinstein with William Blair.

Just want to get a little bit of clarification on Pronto, is it fair to say that you will not really launch the product until you get approval of the Pronto 7, in other words that the first generation products will not be what’s really launched here in the U.S?

No, that is not correct. We have launched Pronto full market release earlier this quarter in the U.S. We have not launched it internationally because we have a predictable path to launching Pronto 7 internationally since we don’t have to wait for FDA clearance. So, the plan is to launch Pronto 7 in a limited market release in this quarter and then by second half of the year do a Pronto 7 full market release and we don’t know when we are going to get FDA clearance but when and hopefully if and when we do obviously we will launch a full market release in the U.S. at the same time. But Pronto is selling in the U.S. physicians offices and we have gone from limited market release of that to full market release.

Can you remind us when you submitted Pronto 7, I think it was in the fall, is that correct?

Yes, it seems like a long time ago. I think as you maybe aware everything has taken longer with FDA, we’ve had some dialogue back and forth with them about the application and we have – we’re waiting but we’ve got assurance of when and if we are ever going to get the clearance. So, we have as a result launched with Pronto just to make sure we get started and hopefully when Pronto 7 is released it’s a better product and we are anxious to launch it in the U.S. as well.

Great. And my last question is, when you guys are talking about Patient SafetyNet and really getting through the S-curve here pretty quickly and moving along that curve, it seems like it’s quicker than what you originally thought. Was this what you were thinking when you guys provided your guidance back three, four months ago or have things really, it seems like things have really accelerated since then.

Yes, things have accelerated further than we have expected. However, I want to caution you that there was a long cycle of installations for Patient SafetyNet. So, while we have a lot of interest and a lot of contracts, a lot of them have not been deployed yet. So the revenues it’s going to take a little time for them to start adding up.

Okay, great. Thanks.

Your next question comes from the line of Spencer Nam with Summer Street Research.

Just have a couple of questions here, so I think it may have been you, Joe, you mentioned that looking at the S-curve adoption of the hemoglobin test that we may be at the steep part of the demand cycle if you will but adoption may be a little bit behind. What brings the gap closer, what do you think is, why are these physicians who maybe interested in the device are still kind of waiting on the sideline?

Well, I believe I mentioned that we are in the steep part of the interest and demand in taking about Patient SafetyNet system of the S curve. With Rainbow and hemoglobin specifically I can call it up I said Rainbow measurement I think we are at the beginning of the S-curve, although we are seeing great interest, great demand but obviously the numbers are not that big yet. But I think still to answer your question, what’s bridging the gap between what we believe ultimately is going to be very successful product to commercially to where it is today. I think it’s a combination of us understanding the first killer market, killer app market for this technology and as well as clinical studies and research coming out and validating what some early studies have shown. Of course, user word of mouth acceptability, I think those are all kind of go together.

I appreciate that, second question I have is, is there any update on the discussions between -- I don’t know if you guys are even having a discussion with Covidien about the royalty issues beyond first quarter of next year.

No. As you can imagine we are not on daily speaking terms. So, there isn’t any and unfortunately I have nothing new to report to you on that.

Okay, thank you.

Your next question comes from the line of Matt Dolan with Roth Capital.

Just a couple of quick follow-ups. Mark, first, can you talk about where you are on your infrastructure build this year relative to the pro forma operating spend we saw in Q1, how should we think about continued investment going forward?

I think, Matt, from a calendar standpoint obviously we have completed one fourth of that calendar so I think even from an headcount standpoint the assumption should be that you will see additional headcount increases throughout the rest of the year which will at least sequentially cause revenues or expenses to continue to climb as we move out into the next couple of quarters. Having said that, there is always a few expenses in the first quarter that are somewhat unique. So, we expect some of those expenses to decline a little bit as we move forward. So, overall we are still comfortable with the guidance that we provided back in February in terms of our operating expense range and the build out of our infrastructure should fit within that.

Okay great and then looking to the foundation in some of the specialty marketing initiatives the Covidien and I trust money. Where you expecting some, is there any numerical impact that you are anticipating or some type of fundamental particularly from a marketing programs that you are looking forward later this year?

All I can tell you that obviously we wouldn’t do it, if we didn’t expect something to come out of it but we are using the money, we are investing in more clinical research activities than before and more maybe some advertising or unique marketing work with the hope that the combination of all these is going to increase the awareness of that benefits of our technology but if you can imagine in marketing you never know what part is going to work. So, and the timing of it my guess it wont be immediately felt there will be more solely felt.

Okay and then finally on a little bit of a longer term question, you paid out the dividend in March. Can you touch on your any business development plans in the future for the company and also maybe the new measurement pipeline when should we think about the next quarter coming?

Business development wise we’re constantly looking at new opportunities and we to-date have not seen anything that we have felt was worth the risk of taken eyes off the current goal that we have in our hands and we think is there a lot of room for growth and one of the exciting things at Masimo is that our revenue run rate is lets say $350 million but our total market potential is somewhere around $4 billion. So, we feel that we have a lot of headroom for growth. As far as new parameters are concerned, I am not sure we will deliver on this but our hope is to deliver a new parameter or a new measurement every year. So, we are seriously working several exciting fronts and with the hope that they will start coming out and in fact they have been coming out the last few years, year-after-year.

Great, okay. Thanks a lot guys.

Your next question comes from the line of Larry Keusch of Morgan, Keegan.

Just a couple of questions, Joe just to make sure that I understand this in terms of pushing out pulse oximetry into the general floor areas, its not like you are saying that interest is growing perhaps at a rate better than you guys had been thinking, a lot of that has been driven by the Dartmouth-Hitchcock study and then also sounded like you indicated that there are some contracts been signed, they haven’t necessarily translated to revenues yet. But I just want to make sure that I am getting that, it feels like there is some increasing momentum under this.

Yes you are correct. Again I said I am giving you the best answer I can at this point and at this point we feel that that market is happening, right now its alive and we are at the company that people are coming to most but it is happening and we believe it’s a $1 billion market that is barely penetrated and its about to go.

Got you, okay and then you used the word when you were talking about your expectations for the launch of RAM in the second half of 2010. I think you had in your prepared comments that you said that you hope to launch it in the second half of 2010. So, I just wanted to again make sure I am understanding correctly what you are saying, is there something that would cause that not to happen?

If we have got any negative reaction to the product things that we felt that we couldn’t complete in time, yes, but I can tell you so forth we have done limited market release and few sides and the reaction has been very positive and in fact I knew at least one of those sides has now come all over their place with RAM. So, I used to work -- because it is a word of the year, I mean that’s paced up but I used the word hope because until it’s up, it is not up.

Got you, I want to make sure I understood that and then lastly just for Mark two questions here. Just got to help us and you have touched on this earlier but again what are the targets for the sales force expansion for this year and then secondly your DSOs were up I am assuming part of that is driven by your OUS sales and also you had about a $2.5 million in your deferred revenues in the quarter and so I will make sure I am clear on what is happening on those metric?

Sure, first of all in terms of where are we on the sales force expansion, you are right I alluded to that before but just more specifically today throughout the world we are probably at about 160, 165 direct sales reps, 200 is the number that we have been articulating really for the past two years or so that’s still is the number that we are headed towards.

Okay.

On the DSO question, you are absolutely right. The two factors that contributed to that increase number one were the increased level of revenues outside of the U.S. and as you are probably aware in general terms outside of U.S. are bit more lengthy than here in the U.S and we have actually experienced some collection issues in some parts of world as you can imagine that are struggling, Spain being a good example. So, some of our DSO numbers internationally have expanded a bit over the last quarter and then the other portion of that you correctly pointed out was an increase in deferred revenue that we have this quarter as a result of a contract that we closed during the quarter and are going to have to recognize that revenue over a period of time. So, that accounts receivable goes onto the balance sheet and it becomes an element in the competition.

Thanks very much.

Your next question comes from the line of John Putnam with Capstone Investments.

Joe I was wondering if you could give us a little color on the foundation in terms of staffing and expenses, ongoing expenses and perhaps the need to contribute to the foundation at some point greater than the initial contribution?

We don’t have any staff per say, we really want to keep it at a board level the most of the work. We do have one part time person who is going to take care of the back office for it and I think due to the point of it is we want to make sure the money gets to the right people instead of a staff. But secondly as far as future whether we are going to put more money into it, it’s possible I think there might be other nice events that are outside of our normal business that may come in that will prompt us to want to put more money into it. But we feel very good about the current funding of it and I think it can do some real good for healthcare as it is right now.

Thanks very much.

If you don’t mind we are doing a time check here, its about 2:30 and maybe we will take one more question.

Your final question comes from the line of Greg Brash with Sidoti & Company. Greg Brash - Sidoti & Company: I know you are not changing your guidance here but I mean do you still with some of the trends you are seeing in Rainbow, your Rad-57, you may seem more cannibalization through the year and you may see more conversions to Resposable from disposable centers. Are you still comfortable with the guidance you outlined of $30 million to $35 million in Rainbow for 2010?

Greg I think as we said earlier I mean all we can really do today is just reiterate what we said back in February and as Joe alluded too before that’s essentially what we are doing today. Greg Brash - Sidoti & Company: Okay fair enough, and then the general floor and the demand you are seeing there is that primarily U.S. phenomenon?

Yes we are seeing some pockets of interest in other countries but really there is tipping point that I have mentioned is happening here not anywhere else. Greg Brash - Sidoti & Company: Great, thanks for taking my questions.

Thank you all. I want to thank you all for joining us this afternoon and I am happy that unlike last year which this time, we had a wonderful quarter to report but we have to caution you about the future. We don’t have to be there, we hope to speak with you all more along and hopefully together very shortly. Thank you for your time.

Thank you. This concludes today’s conference call. You may now disconnect.