Operator: Good morning, everyone, and welcome to the IDEXX Laboratories Third Quarter 2010 Earnings Conference Call. Just a reminder, today's conference is being recorded. Participating in the call this morning are Jon Ayers, Chief Executive Officer; Merilee Raines, Chief Financial Officer; and (Susan Ostrow), Director, Investor Relations.
IDEXX would like to preface the discussion today with a caution regarding forward-looking statements. Listeners are reminded that statements that members of IDEXX management may make on this call regarding management's future expectations and plans and IDEXX's future prospects constitute forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements can be identified by the use of words such as expects, may, anticipates, intends, would, will, plans, believes, estimates, should, and similar words and expressions. Such statements include but are not limited to statements regarding management's expectations for financial results for future periods. Listeners are reminded that actual results could differ materially from management's expectations.
Factors that could cause or contribute to such differences are described in IDEXX's quarterly report on Form 10-Q for the quarter ended June 30, 2010 and Form 10-K for the year ended December 31, 2009 in the section captioned 'Risk Factors,' which are on file with the SEC and also available on IDEXX's website, idexx.com.
In addition, any forward-looking statements represent IDEXX's estimates only as of today and should not be relied upon as representing the Company's estimates as of any subsequent date. The Company disclaims any obligation to update or revise any forward-looking statements in the future even if its estimates or expectations change.
At this time, I would like to turn the conference over to Merilee Raines. Please go ahead.
Merilee Raines - Corporate VP, CFO and Treasurer: Thank you, Bonny and Cynthia. Good morning, and thanks for joining our call today. I'd like to begin with a quick overview of our third quarter results. In our press release this morning, we reported revenues of $269.6 million, a year-to-year growth of 4% and diluted earnings per share of $0.59, growth of 13%. Earnings per share were about $0.03 above our thinking in July, reflecting about $0.01 of benefit from currency and $0.02 of benefit from the lower than planned tax rate.
As relates to more fundamental business performance, revenues excluding a roughly $1 million favorable impact from currency, we're about $1 million below our thinking at that time, reflecting lighter than anticipated instrument sales primarily in our Digital Radiography offering. The lower revenues were offset at the bottom line by a slightly more favorable gross margin.
I'll note that third quarter earnings include two items that were also not contemplated at the time of our July call. Approximately $1 million for bad debt provision related to the bankruptcy of one of our U.S. distributors Professional Veterinary Products and $1 million revenue milestone payment related to the sale in late 2008 of our development stage feline diabetes therapeutic. These items which are both reflected in the G&A line essentially offset each other.