Greetings and welcome to the Graham Corporation third quarter 2010 quarterly results conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. (Operator instructions). As a reminder this conference is being recorded. It is now my pleasure to introduce your host, Ms. Deborah Pawlowski, Investor Relations for Graham Corporation. Thank you, Ms. Pawlowski. You may begin.

Thank you, and good morning, everyone. We appreciate your joining us today on Graham’s fiscal 2010 third quarter financial results call. On the call with me today are Jim Lines, President and CEO of Graham, and Jeff Glajch, Chief Financial Officer. Jim will briefly review the third quarter’s performance and will discuss the Company strategy and the outlook as well as his perspective on the state of the industry’s we serve, while Jeff will be reviewing the Company’s performance in the recent quarter and first nine months of the fiscal year. You should have a copy of the earnings release that was put out this morning, and if not, you can access at its Company’s Web site, which is www.graham-mfg.com. In addition, we have posted supplemental slides on the Web site to provide a visual overview of our results. As you are aware, we may make some forward-looking statements during the formal discussion as well as during the Q&A. These statements apply to future events and are subject to risks and uncertainties as well as other factors that could cause actual results to differ from what was stated here today. These risks and uncertainties and other factors are provided in the earnings release as well as other documents filed by the Company with the Securities and Exchange Commission. These documents can be found both at the Company’s Web site and at sec.gov. So with that let me turn it over to Jim to begin the discussion.

Thank you, Debbie. And good morning, everyone. I will review highlights for the quarter, touch on full fiscal year 2010 expectations, discuss current market environment and our outlook. Although it is early year to frame up fiscal 2011 we will also provide a few remarks about what we expect. Jeff will provide details on the quarter and for the full year. The third quarter surpassed my expectations for profitability. We cannot say not about the fine work our team did to control costs, operated a high level of productivity and to execute. We continue to experience a dismal environment in our markets. And for the sales standpoint our third quarter and we believe the next three quarters represent the bottom of this downturn for the company. Despite a 50% reduction in sales compared to one year ago we continue to meet our commitment of remaining profitable and generating operating cash flow each quarter. We achieved $0.08 per share or $12.2 million in revenue. And all things considered it represented good control over costs and excellent execution. Our full-year guidance for fiscal 2010 is revenue between $60 million and $63 million. Gross margin in the range of 34% to 36%. And SG&A around $12 million. To achieve the upper range for revenue and gross margin a few things will have to work in our favor to include some assistance from our customers to release engineering during the quarter so we can begin production. And no slippage on delivery dates for orders in production. It has been a struggle since the downturn took hold to finalize engineering with our customer for major orders and then release the work into production. Secondly, we need to book $2 million to $2.5 million of small orders that convert the shipments in the quarter. We have…

Thank you, Jim, and good morning, everyone. I will start with a review of sales and operations activity before moving on to orders and backlog. As you saw in the release net sales in the third quarter of fiscal 2010 were $12.2 million, a $12.5 million decline compared with the last year’s third quarter and down $3.9 million from the trailing second quarter of this fiscal year. As expected Graham sales have continued to shift toward international and away from the U.S. market. Third quarter fiscal 2010 sales were 42% domestic and 58% international, completely inverted from last year’s third quarter although first half of this year’s sales had been equally split between the U.S. and international markets. U.S. sales declined $9.3 million or approximately 65% to $5.1 million in the quarter while international sales declined $3.2 million or just 32% to $7.1 million. Sales to all major international regions were lower compared with last year’s third quarter with the exception of Africa. For the first three quarters of fiscal 2010 net sales were down 37% below last year’s comparable period. In this period U.S. sales made up 48% of total sales and international sales accounted for the remaining 52%. The percentages for the same period last year were weighted more heavily toward the U.S. which had 63% versus 37% international. Sales in the first nine months of this fiscal year to Asia had nearly doubled to $14.9 million from $7.8 million in the first nine months of fiscal 2009. This combined with slower U.S. market sales accounted for the majority of the shift toward international weighting. While the current quarter’s order levels was heavily weighted toward the U.S. if you were to exclude the large North African U.S. Navy project orders would have been more weighted toward international as…

Thank you, Jeff. Operator, please open the line for questions.

Thank you. (Operator instructions). Our first question is from the line of Rick Hoss with Roth Capital Partners. Please proceed with your question sir. Rick Hoss – Roth Capital Partners: Hi good morning, Jim, Jeff, Debbie?

Hi, Rick.

Good morning, Rick.

Hi Rick. Rick Hoss – Roth Capital Partners: For this quarter and you've given your expectations for comparable types of revenue level that’s taking sequentially would you view this quarter as probably the weakest from a revenue standpoint?

We view that the next three quarters will have revenue in the range that actually similar to the third quarter that just ended, however, there can be some upside to that based on releases from our customers and being able to get engineering into production and then revenue recognition. Risk on the downside is delays from our customer in doing that and the level of small orders that are one that typically can convert within a quarter. So we see the right ways to think about over the next few quarters is comparable to the third quarter, understanding there could be some upside and there is some risk or little downside. Rick Hoss – Roth Capital Partners: Okay. And then earlier, Jim, you talked about types of product that you could sell in the $2 million to $2.5 million range, what products are those?

That comment was for our smaller products and that we to meet the upper end of the full year guidance required an additional level of bookings in this quarter that would convert to sales in the quarter of $2 million to $2.5 million we have after market, small heat transfer products, small ejector systems and vacuum pumps that, that stood that category that have an ordered to shift cycle between one week and six weeks. Rick Hoss – Roth Capital Partners: Okay. And then you comment that January looked pretty good so far that would be related to those types of smaller (inaudible) type product?

That’s correct. Rick Hoss – Roth Capital Partners: Okay. And then on the productivity improvements that you mentioned in your release can you give us an appreciation to what type of benefit we could see to say take a revenue level and just again in 2008 year you’re on $85 million, your SG&A was $13 million can you tell us an approximate level that given the new structure that you’re operating under, what for SG&A you would expect?

For the productivity improvements they relate more to in the costs. Rick Hoss – Roth Capital Partners: The gross margin?

In the gross margin. Rick Hoss – Roth Capital Partners: Right.

Although we have business improvement that goes into the SG&A side much of our capital plan really related to leveraging the operations side of the business. Rick Hoss – Roth Capital Partners: Okay. So it would be pretty difficult to nail down as the profitability of future products probably be lower than you experienced in 2008 however that would be partially offset by these improvements that you made in the organization?

That’s a great way to look at it. That’s how we thought about it. When we embarked on the capital plan recognizing over a period of time we will be facing margin pressure in the marketplace because of the business becoming more weighted toward international sales and the type of orders that we thought we would win in the comings years. To combat that we had an aggressive capital plan to improve the performance of the business. So we do think generally we will have margin pressure and we’ve done a number of things to have a defense against that, but we’ve also commented if you’re comparing us to 2008 or 2009 fiscal year performance the gross margin was 40% plus or minus a little bit we would expect in a comparable period of peak market conditions that we would be a little bit below that in the mid-to-upper 30% gross margin range of a modeling ramp. Rick Hoss – Roth Capital Partners: Okay, thanks for your insight.

You’re welcome.

Thank you. Our next question is from the line of Chris McCampbell of Stifel Nicolaus. Please go ahead with your question sir. Chris McCampbell – Stifel Nicolaus: Good morning, guys. Just had a quick question. Can you remind me if we still have an active stock buyback program or did that end I guess last year?

This is Jeff, Bell. We do still have an active buyback program that is in place until July of this year. We have not repurchased any shares under that buyback program since the first quarter of this fiscal year however. Chris McCampbell – Stifel Nicolaus: Okay, great, thanks.

Thank you. (Operator instructions). Our next question is from the line Dick Ryan with Dougherty. Please proceed with your question sir. Dick Ryan – Dougherty: Hi, good morning, guys. Jim, you talked about an environment where you are seeing increased competition, pricing pressures but then your comment of exceptionally high capture rate. Can you kind of walk through what you know, what you are saying there and what’s causing that high batting average if you will?

Sure. What we’re seeing right now compared to one year or two years back is the number of opportunities at any given point in time are far fewer where orders that are closing, therefore, the same number of suppliers are chasing fewer orders and that increases the competitive pressure. And then you add to that far less of the available opportunities are for the North American market, which had in the past a much higher margin potential. So we have those things going on, but to our credit, our sales team, our application team has had a very close focus on those orders that we felt would be closing and our interaction with the customer, our managing of the sales pipeline really have led to an increase in our capture ratio with an aggressive for those projects that are closing. In some cases admittedly we took a defensive posture to maintain our dominant position in a particular market, in other cases the margins have been customary, but in general, and I would say the competitive pressure is greater than it had been one year to two years ago. Dick Ryan – Dougherty: Okay. On the international side, I think you mentioned you’re seeing for the strength in Africa and then South America was mentioned earlier can you give us a little color on what you’re seeing in some of those regions?

Sure, yes, the recovery appears to be in early stages in the Asian market, in particular, in China, also the Middle East has had some activity and we’ve had prior announcements regarding orders that we have won for the Middle East and we felt and we had indicated that Asia and the Middle East would lead the recovery in our markets followed by South America. The opportunity pipeline that we’re looking at there’s a number of projects on the horizon in South America for the state-owned refiners expanding the refining capacity or adding new petrochemical plants and we see those materializing over the next one year to five years, the Middle East has had a couple of projects move ahead and China has been pretty steady. Africa was that was an isolated case of fertilizer project in Northern Africa that we had won. Dick Ryan – Dougherty: Okay. Great. Thank you.

You’re welcome.

(Operator instructions). Our next question is from the line of James Bank of Sidoti & Company. Please go ahead with your question, sir. James Bank – Sidoti & Company: Hi, good morning.

Good morning, James. James Bank – Sidoti & Company: Hi, joining very late to the call here. I just wanted to quickly ask if there were any new words mentioned on your prepared remarks, Jim, for the month of January.

We did not mention any (inaudible). James Bank – Sidoti & Company: Okay, great. And again if you’ve already covered this I’m sorry, but certainly a big noticeable increase in your power orders in this recent quarter I was wondering if there was something specific in there or this is the type of trend we should see going forward given the fact that refining is especially in the U.S. is slow?

James, this is Jeff. Is it really powers [ph] the power in other category related to the U.S. Navy project that we (inaudible) that we announced in December that falls into that category (inaudible) but that’s the big driver there. James Bank – Sidoti & Company: Okay. And lastly I guess for the U.S. any good news to report from maybe some renewable fuel works, any of these alternative areas that you guys otherwise didn’t participate really historically I think given this environmental shift?

Looking at the U.S. market there is a lot of activity in small power plants, cogeneration, waste to energy, municipal solid waste to energy, combined cycle power plants, those historically going back to the 80s a little bit in 90s when it was active was an area that grounded very well in and we have our eye on that. James Bank – Sidoti & Company: Okay. Great. Thank you.

Welcome.

Welcome.

(Operator instructions). Thank you. There are no further questions at this time. I would like to turn the floor back over to management for closing comments.

Well, thank you, everyone, and we look forward to updating everyone again on our May call. Thank you.