Ladies and gentlemen, thank you for standing by. Welcome to the Quidel Corporation third quarter 2010 conference call. At this time, all participants are in a listen-only mode. Later, instructions will be given for the question-and-answer session. (Operator instructions) I would like to turn the call over to Mr. John Radak. Please go ahead.

This is John Radak, Chief Financial Officer at Quidel. Thank you for participating in today's call. Joining me today is our President and Chief Executive Officer, Doug Bryant. Today Quidel released financial results for its three months ended September 30, 2010. If you have not received this news release, or if you would like to be added to the company's distribution list, please call Ruben Argeta (ph) at Quidel Corporation at 858-646-8023. Please note that this conference call will include forward-looking statements within the meaning of federal securities laws. It is possible that actual results and performance could differ materially from these stated expectations. For a discussion of risk factors, please review Quidel's Annual Report on Form 10-K, registration statements, and subsequent quarterly reports on Form 10-Q, as filed with the SEC. Furthermore, this conference call contains time sensitive information that is accurate only as of the date of the live broadcast, October 27, 2010. Quidel undertakes no obligation to revise or update any statements to reflect events or circumstances after the date of this conference call, except as required by law. For today’s call, I will report on the financial results for the quarter and year to date, provide details on the DHI acquisition synergies, and speak to our financing activities. Doug will provide color on our near term and longer term business growth prospects, and give an update on our new product pipeline. We will then open the call to your questions. Total global revenues for the quarter were lower, when compared to Q3 of 2009, primarily due to the benefit associated with last year’s flu pandemic. Excluding the impact of influenza on the combined businesses, our revenues in total grew approximately 4% in Q3 of 2010, over the same period of the prior year. DHI contributed $9.4…

Thank you, John. For today’s call, I’ll provide an update on our progress with our near term initiatives to accelerate revenue growth, and then update you on the status of our new product development programs. Before I begin, however, I want to remind the audience that our strategic intent is to create shareholder value by creating a broader based diagnostic company, with products and market segments in which we have significant expertise and know how. For the past 18 months, Quidel has been focused on three strategic imperatives. First, utilizing our core infrastructure to launch two to three new products per year; second, strengthen our distributors emphasis on Quidel products, and finally; third, develop a molecular franchise. As we execute these strategic imperatives, we’ll be building a broader, more diversified diagnostic company, with an ability to capitalize on respiratory disease epidemics as they occur. In terms of near term growth drivers, there are three products that we expect will have an impact in 2011. QuickVue Influenza A+B, Thyretain, and our recently launched Lateral flow immunoassay. Starting with flu, we continue to see influenza as a growth driver for our business in Q1 2011, and over the next several years. While rapid flu test usage by physicians has grown substantially in recent years, we believe that the rapid influenza test market is still underpenetrated, and that there is opportunity for growth. From 2003 to 2008 the number of patients presented to physicians with IOI that were tested with a rapid flu test has increased dramatically, and the market has more than doubled over that period. In 2009, physician adoption of rapid diagnostics increased further still, albeit during the pandemic. We are encouraged that during Q3 2010 most of our major distributors had significant increases in their out sales, when compared to…

(Operator Instructions.) Your first question is from the line of Zarak Khurshid with Wedbush. Please proceed. Zarak Khurshid – Wedbush Securities: Hey guys, good afternoon. Thanks for taking the question. I was just curious, what are the challenges you’re seeing with penetrating the Thyretain opportunity? and what are you learning about the kind of challenges within the sales force as well?

The biggest challenge is that when we polled physicians, on average, many are not aware that there is an assay that would be confirmatory for Graves, so our mission at this point is mainly educational. So we’ve got the sales force who are doing a great job, I think, of making the calls they can, but 30 people on the ground can only go as fast as the number of calls they can make each day, right? We are doing a great deal of work around educating physicians through other means, including symposia, workshops, webcasts, and we have a number of papers that are due to come out in the fall, which will be helpful. Zarak Khurshid – Wedbush Securities: Great. I have a followup question regarding the R&D around the fluorescents reader and the bobcat. How should we be thinking about the R&D expenses associated with the development of those platforms? Should it – will it be ramping up as you get closer to FDA approval, and manufacturing scale up?

That’s a great question, Zarak. Let me start by saying that as we exit 2010, a lot of the instrument development cost will fall off, and then they will be replaced in the first half of 2011 by clinical trial cost. So if, indeed, all of those things that we described actually hit the timing that we have in mind, it’s entirely possible that in Q1 and Q2 that our R&D expense will increase slightly, but then be offset in Q3 and Q4 by an equal amount, such that by the end of 2011, we will still have an R&D expense that is about the same as we’re seeing in 2010. Zarak Khurshid – Wedbush Securities: Great, that’s helpful. Thank you.

Your next question is from the line of Scott Gleason with Stephens. Please proceed. Scott Gleason – Stephens: Hey Doug, hey John. Thanks for taking my question. I guess would you be willing at this time to share a little bit more information about the second generation lateral flow product? I guess when we start thinking about the actual system cost, to the end user, we start thinking about workflow, and then also maybe from a cost of goods sold standpoint on the disposal basis. Can you give us some granularity on what that would look like?

The short answer is I don’t think it would be appropriate to announce what our costs are for either the instruments or the reagent. I can tell you that when we look long term at the strategic plan, we certainly see gross margins and operating margins that improve throughout that period. Scott Gleason – Stephens: Okay. And then Doug, can you give us an update in terms of what’s going on with the second generation fecal occult blood test?

We’ve -- especially now, are at the point where we need to make a decision as to changes to the product that would make it inherently easier to read than the current methodology. Right now, as we see it, our product as well as the other competitive fecal occult blood tests that are in the market all suffer from the same problem and that is that they are positive at levels that may not be particularly useful for physicians. And so we’re looking at ways that we can improve the product such that when a physician sees a positive, it’s at a level that’s indicative of the need to refer that patient for colonoscopy. So until we can see greater traction in the market, we’re not sure when we should make that investment through that product. Scott Gleason – Stephens: Okay, great. And then just last question, when we start looking at the bobcat platform, I guess when we think about a virologist performing these tests, how are they reimbursed? Is there a technical component and also a professional component? And I guess would that professional component change at all, in terms of thinking about a direct read in the laboratory?

So Scott, let me make sure I understand the question. Are you asking about reimbursement for DFA testing generally? Scott Gleason – Stephens: Yeah, I’m talking about the virologist. Would there be any change in terms of how they would get paid when you start introducing the bobcat? In terms of their incentive structure with the test?

There should not be any change, if you’re talking about an inpatient, of course, that’s not a reimbursement question. On an outpatient basis, DFA tests, the reimbursement is the same for the existing as well as the future. Scott Gleason – Stephens: Okay, so there’s no professional/technical component associated with this?

Not that I’m aware of, no. Scott Gleason – Stephens: Okay, thank you for taking my questions.

Your next question is from the line of Pete Vitali with William Blair Company. Please proceed.

Hey guys, question for you on where you are at right now on the percent of revenue that you are generating from seasonal versus non-seasonal products. Kind of what the current run rate is?

That’s a tough question to get at right now, because of the – we’re at the seasonal low period. Generally, we believe that by the end of the season, we’ll probably be roughly around a third of our revenue will be seasonal.

Are there any long term goals that you guys have as far as where you’d like to see that in the next two to three years?

No, that would be impossible to do, because what would be unbelievable is to grow the non-seasonal by some huge percentage, but also grow the seasonal by that same huge percentage. So I’d have to say that no, we don’t have a specific goal to say that the seasonal would be low as a percentage of the total. Because frankly speaking, if we had seasonal products that grew hugely, that would be fine.

Okay, thanks guys.

Your next question is from the line of Steven Crowley with Craig-Hallum Capital Group. Please proceed. Steven Crowley – Craig-Hallum Capital Group: Good afternoon, gentlemen. I want to ask you a little bit of a follow up on Thyretain and the whole thyroid area. In terms of some of the push marketing and other sales activities that you’ve tried to crank up, what are some of the leading indicators that you’re looking for, in terms of response? Besides more test ordering, are you seeing some reaction to your actions that leads you to some encouragement at this point? That what you’re working can have a positive impact?

Well, like any commercial organization, we have a system in place where we track, weekly, the activities of our sales organization, so we know the number of calls that they attempt to make, and then the number of calls they are successful making. We know the responses from the physicians, either positive or negative, and so we track all those things. I would say though, Steve, we should be careful of that, because even though those are a positive, just because a physician says “Yes, I will start ordering TSI when I see a certain level of TSH result” doesn’t mean that actually translates, necessarily, into test ordering. We do see positive signs, but I won’t be satisfied until I see a dramatic shift in actual sales of our product into the big reference labs. And thus far, we’re seeing very good growth, you know, year over year, very high teens for sure, but it needs to ramp up dramatically past that to be the product that we ultimately think it could be. Steven Crowley – Craig-Hallum Capital Group: And some of the other potential opportunities for you in that thyroid or thyroid disease complexer, is your pursuit of those opportunities contingent on whether you can get this ball rolling a whole lot faster, or just have the steady progress there? Are you waiting on those decisions, or is so logical that you that you’re likely to proceed with some of those other product initiatives?

Not only Steve, is it logical, but we’re highly confident and we think this will happen, therefore we’ve already funded internally another program that’s closely related to Graves disease. So if you look at the autoimmune disorders, Graves of course is the largest and most common, followed by rheumatoid arthritis. The third most common in the US is Hoshimoto’s, which is also Hoshimoto thyroiditis, which is also related, and we’d incorporated a similar cell based format, so to say it again, not only are we confident, but we’re already making the investment on the R&D side. Steven Crowley – Craig-Hallum Capital Group: Great. and then as a precursor to what you’re going to be doing with bobcat, the introduction of fast point DFA tests, and – have you had some success getting a fair number of evaluations of that technology out there in the field, and beginning to convert those? Where do you stand on that process?

Let me start by saying while we are very happy with the progress we’ve made with the integration of DHI generally, certainly one of the disappointments was that we didn’t have a respiratory season in Q1, the season during which we’d expected to start up a large number of evaluations, so we’d expected to be further along in the process. So starting the process in the summer we knew it was going to be slow anyway. Having said that, I think the most encouraging thing, Steve, is there are a number of evaluations ongoing already, equally encouraging, most of those evaluations were started by the former Quidel sales force, which says something about the segment that we’re going into, and then third, we’re encouraged by actual sales we’re starting to see now, in October. So I would say we’re at the very beginning of that stage during which we achieve traction, and it’ll be our objective now to follow up with customers as we go into the respiratory season, and not only get product ordered, but get it reordered. Steven Crowley – Craig-Hallum Capital Group: Great. One more from me, and I’ll hop back in the queue. On the development project and the relationship with Northwestern and the intention to bring the system as you described in your prepared comments, it seemed like the angle of those comments was about bringing in a much more cost effective solution to the marketplace. You also envision a certain set of differentiated capabilities or a disease group or disease groups where the features and functionality of the system will be best suited. Can you give us a little more of the picture of the opportunity you’re looking to shoot at, there?

Well, as a result of the agreement initially, we’re obligated to co-develop with them a HIV viral load product, which would be distributed to emerging growth countries, and we would use that expertise to load in other assays along the way. Certainly all the things that we have currently as open box assays, the seven analogs that I mentioned a few minutes ago, those would be immediate candidates. So along the lines of infectious disease, and certainly respiratory disease products, those would be obvious for us. But there are some other candidates as well that we certainly are interested in. Steven Crowley – Craig-Hallum Capital Group: Great. Thanks for taking my questions.

Thank you, Steve.

That’s all the time we have today. Please proceed into your presentation with any closing remarks.

Well, this concludes the call for today. John and I thank you again for your time this afternoon, and for your continued support. Take care everyone.