Good morning everyone and welcome to the IDEXX Laboratories’ Third Quarter 2012 Earnings Conference Call. As 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 Pete Levine, 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, 2012, 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. Also during this call we will be discussing certain financial measures not prepared in accordance with generally accepted accounting principles or GAAP. A definition of those non-GAAP financial measures is provided in our earnings release which can be found on our website idexx.com. Finally, we plan to end today’s call by 10:00 AM Eastern. In order to allow broad participation in the Q&A, we ask that each participant limit his or her questions to one with one follow-up as necessary. We do appreciate you may have additional questions so please feel free to get back into the queue, and if time permits we will be more than happy to take your additional questions. I would now like to turn the conference over to Merilee Raines. Please go ahead.

Good morning and thank you for joining our call today. As reported in our press release this morning, our third quarter revenues were $315.5 million, yielding organic growth of 6% and diluted earnings per share were $0.76, a year-to-year increase of 15%. Organic revenue growth was a couple of points or so below our expectation at the time of our July call, primarily the result of lower revenues from instruments and from our livestock and poultry business. Earnings per share were essentially in line with our expectations as lower spending mitigated the gross profit impact of the revenue shortfall. While currency was slightly more favorable to reported revenues in our thinking in July, the impact to earnings per share was immaterial. As for what we are seeing in the US veterinary market based on data from approximately 500 customers using our Cornerstone Practice Management System. In the third quarter, patient visits grew by 3.5% and practice revenues grew by 6%. These metrics are relatively consistent with what we saw in the second quarter, with patient visit growth of 4% and practice revenue growth of 5.5%. The consistency of the second and third quarter data once further validation to the hypothesis that the strong first quarter metrics of 5% patient visit growth and 7% practice revenue growth were favored by the mild winter weather experienced in much of the country. In Europe overall we saw organic growth for our companion animal group of businesses hold steady at 5%, consistent with the first half of the year. The countries, primarily in southern Europe that are experiencing the greatest fiscal issues, are showing relatively lower growth, however we are seeing solid growth in Germany and strong growth in more emerging markets in eastern Europe. For the balance of 2012 and into 2013 we…

Okay, thank you, Merilee. We could be more excited about our progress with our innovations at IDEXX, especially in the last quarter. In the Companion Animal Group, we have very strong base in our diagnostic offerings, including a world-class reference lab network and a set of in-house diagnostic capabilities that are unmatched. We have discussed in the past calls our steady stream of advancements in menu and ease-of-use for the in-house equipment and kits, as well as geographic and expansion on the reference lab side. We continue to develop new enhancements and commercialize the ones we have already released. But what is new is how we are transforming diagnostics with information technology, using the latest software development tools. In early Q3, as investors know, we formally launched VetConnect PLUS, a cloud-based application that provides the practicing veterinarian access to integrated diagnostic results for each individual patient, from blood analyzed by either our reference lab or our in-house equipment or both. VetConnect PLUS has a highly intuitive interface that allows for analysis of the patient’s most recent blood work data in the context of all of their historical data run on IDEXX. This time-based analysis with the support of intuitive graphing tools provides far, deeper insight into a patient’s health status. As financial analysts, think of how much more value is derived from looking at trends overtime versus data from just a single period. In addition, because our diagnostic data is in the cloud as soon as the results are available from either in-house equipment or the reference lab, this information is available real time anywhere, at any moment, opening up the obvious value of mobile computing to a veterinarian. For example, the fact that they can see blood work completed on their patients with their in-house hospital equipment, when they…

(Operator Instructions) We will go the line of Ryan Daniels with William Blair, please go ahead.

Thanks for taking my question first. I know you don’t want to get into the details exactly on 2013 guidance at this point on all the nuances. But I am curious, if you can talk a little bit more about some of the nuances with the new distribution agreement in regards to you getting higher margin of that and how you reinvest proceeds? I am curious, if it will go, not proceeds but margin, will it go into more R&D, more direct sales and marketing, just how are you thinking about that at this point?

I will just remind, thanks for the question Ryan, and just to remind investors, as we expected that the new agreement with MWI would transitioned to 10% margin for them, or say a targeted margin based on the retail price or clinic price of our products from 15%. So there would be 5% margin there. It’s hard to say because it’s really a mixture of a lot of different things, money is fungible, and it’s probably a combination of everything that you mentioned.

Okay, fair enough. And then I guess I might follow just on the VetLab instrument placements, I know you mentioned there is a little bit of weakness and I know the summer months might be a weaker quarter versus Q4 anyways, but anything in particular you are seeing there, you know more competitive pressures, is it more of a focus on kind of selling and launching all the new products you have had, just any color there would be helpful? Thanks.

Yes, I think the market is fine and I don’t really see the competitive pressure, it’s a very competitive market of course, I don’t really see it any different in Q3 than it was in prior quarters. We did have a lot of new launches and we had some management that – new management, managements that changed position in the first part of the quarter. So, I think it’s kind of a transitory thing. I also reinforce Merilee’s point that we had a very strong instrument placement in quarter last year, so the year-over-year compares is a little bit tough. Instrument placements can have very strong quarters and quarters like Q3, but we are very excited about the momentum and we are also excited about the quality of our placements. Quality can be measured in a couple of dimensions. One is the percent of new customers and Merilee mentioned that, the 40% for the Catalyst placements, and the second is the size of the customers. We are continuing to win big customers. For example, we completed outfitting the Animal Medical Center in New York City, which is the world’s -- probably largest and most well-known veterinary practice and now it is all IDEXX with Cornerstone that went into Q3, we have a lab there, they have our in-house equipment. It’s a great example of the kind of big accounts that we are winning. If you look at Q3, one of the things that we are very pleased about is the continued momentum in the core annuity portion of the business that is the consumables and the labs. That just continued to power along as you heard from the metrics from Merilee. So, that gives us confidence with the outlook.

Great, thanks for all the color.

Our next question comes from David Clair with Piper Jaffray, please go ahead.

Yes, hi, good morning Jon and Merilee. So my first question is on the 2013 guidance. Just given the macro environment that we are seeing, the distributor change, and the decelerating growth we have seen through 2012, just want to try to get a little bit more comfortable with the outlook here. Can you give us some additional details just on the acceleration in organic growth?

Sure, David. I will take a stab at that and Jon may add some things as well. Of course, in January we will get into more detail by product line, but I would say at a higher level there are a few things that are driving that step-up in organic growth. First, we do expect that the information innovation such as VetConnect PLUS and Pet Health Network Pro will generate volume growth both via account acquisition and also an increase in account loyalty. And as well, because of the value of those offerings bring to our entire portfolio we will see increased price realization. In addition, we will have some favorability or we expect some favorability in price as we anniversary to ramp-up some marketing programs, programs such as the protocol-based rebate program that we launched in the third quarter of last year that’s driving the top instrument placement compare, and that program negatively impacted the price of VetLab consumables the way the accounting treatment works, and as well the instrument and lab bundled programs negatively impacted the pricing on our reference lab business and I think we alluded to that in the last couple of quarters. We expect some acceleration in growth from geographic expansion. An example of that is the new hub lab in Germany, which will extend our reach in Europe. More generally, we see opportunity for growth internationally from investments that we are making in commercial resources, I just mentioned that we are making the investment to go direct in Scandinavia and also the investments in recent product launches as we roll those out internationally things like ProCyte was just launched a couple of quarters ago, our last quarter Q2 in Japan and so that’s still got a nice growth ramp to it. As Jon mentioned, VetConnect PLUS we intend to bring out internationally next year. So, those are just some of things that would be behind that step-up in organic growth from 2013.

I think it is important question, Dave, and I really appreciate it. In addition to the factors that Merilee has mentioned, you mentioned that the change in the US distribution, I think it is important to recognize, as Merilee mentioned in her prepared comments that 80% of our Chemistry consumables that are served by the market that distribution serves, you take out corporate accounts, 80% of those even today and if that percentage continues to grow is what Catalyst chemistry analyzes. The loyalty we have on Catalyst is over 99%. It’s hard to get much better than that. People love Catalyst, they love everything about it, and in addition when they start using VetConnect PLUS, they are going to love it even more. It’s a very, very loyal customer base and the vast majority of our consumables today are actually coming from that portion of the Chemistry base. In addition, we have a couple of hundred reps in the field. We have three times that number of distributor reps. We have a wonderful relationship with all of our US distributors, including a continuing strategic relationship with MWI, particularly because they are also helping us with the Cornerstone software. So, really, the changes is really a minor aspect when you look at the -- first of all, the innovation we are bringing in the market, the situation that we have and of course the breadth of go-to-market channels and assets that we use to commercialize our product. So, we are very excited about 2013.

Okay, thanks a lot. As a follow-up from me, I was curious, given the new software launches that we have seen recently, can you parse the performance at digital radiography versus practice management?

They both grew but the practice management was clearly the lead horse in that low double-digit growth of that product line.

Alright, thank you.

Our next question comes from Erin Wilson with Bank of America, please go ahead.

Hi, thanks for taking my question. First I guess on the international side, can you give us an update there and the opportunities there? I know you talked about a little bit already, but the Germany lab I guess seems on track or even ahead of schedule. Did that actually have an impact on the current quarter’s results and that’s embedded in your guidance, right?

It is embedded in our guidance and I think we are very pleased with -- I want to say 5% organic growth in Europe for our Companion Animal business and no impact from the new lab because it actually didn’t start operating until this month, October, and it’s really just starting to crank up. So, we really see it being a 2013 contributor, but we are very pleased because it is in operation. It was a significant investment but a core lab and using a new logistics network. We know how to do it, we have been very successful with Memphis which didn’t exist 4 years ago, it’s now our largest lab in North America and so we are using that model for serving Continental Europe.

Okay, great. And then as it relates to the distributor changes, and I guess MWI, do you anticipate any material changes in ordering patterns from MWI?

No.

Okay, great. Thanks.

Ross Taylor with CL King, please go ahead. Ross Taylor - CL King & Associates: Hi, just two simple questions. VetConnect PLUS, I know it’s in very early days, but I just wondered if you can see any changes in behavior or kind of utilization of diagnostic test by the vets who are using it at this point? My second question relates to Pet Health Network Pro. I just wondered if you expect any material revenue contribution from that product in 2013?

Okay, those are two great questions, thanks. On VetConnect PLUS we do believe it has the potential to drive diagnostic utilization, as I said in my upfront comments. What I will say is in veterinary medicine behavior change happens over time in strong waves but it happens slowly. It plays out slowly. So, we believe that as veterinarians experience a particular case where they are able to see inside from changes in the individual patient’s parameters from the individual reference range but still within the reference range of the species and they are able to make better diagnosis and have pretty fabulous experience with those pets, they and their staff will then have further impetus to go really communicate the value of preventative care diagnostics with pet owners and it is so intuitive with the graphing tool, but that’s going to be a megatrend in my view. I think it is going to be a megatrend in all medicine but we are leading the way in veterinary medicine because we can innovate faster. I think that’s going to be a megatrend that will play out over the next half decade as an example. So, it is a powerful long-term trend but it takes a while for veterinarians to see this. What we do know is the clinical basis, the clinical pathologists have been teaching the value of trending for decades. So this is on extremely solid medical ground as far as the academicians and the key opinion leaders are, and it is really just bringing it to practice. On Pet Health Network Pro, it is a great business because it is a subscription-based business and it has the characteristics of a software-as-a-service type business, and it will be contributor to our organic growth, but in the mix of $1.4 billion it is going to be one of the many things that will contribute to our growth, probably won’t be material in and of itself. Ross Taylor - CL King & Associates: Okay, that’s very helpful. Thank you.

We will go to the line of Debbie Wang with Morningstar, please go ahead. Debbie Wang – Morningstar: Thank you very much for taking my question. One of your competitors has been out there with their new reference lab for about a year now, and I am just wondering on the ground to what degree you’ve noticed anything, or any impact from that?

I wouldn’t say the competitive environment is any different today than it was 6 months, a year-and-a-half ago. It’s a very competitive environment in the reference lab business. We have one large competitor who is quite confident and capable and we have to compete with them every day, an addition of one lab when you got, I don’t know, probably between the two of us close to 100 labs there is not really -- I don't think we can really see that. But we are excited that we have new elements of clear differentiation with our reference labs with VetConnect PLUS that will give us additional competitive advantage as we go into 2013, both on customer acquisitions, but also customer loyalty. I mentioned the extremely high loyalty we have in the Catalyst. The labs is not as high it is in the ‘90s, mid-90s at loyalty, but if you go from the mid-90s to high-90s in loyalty that change in percentage loyalty you can just add right to your growth all other things being equal. So we are very excited about the lab business. Debbie Wang – Morningstar: Okay, thank you. That’s all from me.

(Operator Instructions) We will go to the line of Ben Haynor with Feltl and Company, please go ahead.

Morning, thanks for taking my questions. On the lab side of the business, can you kind of parse out what roughly the percentage was in organic growth that was due to new customer acquisition and then price increases?

Ben, approximately 70% of the growth was volume growth and that’s largely due to acquisition of new customers, and then 30% would be price.

Okay, great. And then as a quick follow-up, with the acquisitions you made in Q4 last year, what do you expect the growth due to acquisitions to be at kind of half below where they have been running at in Q4? Is that a reasonable assumption?

That’s probably about right, yes -- happened in mid-November.

Yes, they were mid-quarter.

Okay, thank you very much.

Thank you.

We will go to Nick Jansen with Raymond James. Please go ahead.

Hi, I know you guys signed a relationship with GREER on allergy in 2Q. Maybe just your initial progress or thoughts on that market as you were live for three months?

Yes. We are very pleased with the rollout of allergy. It is actually one of the many contributors to the reference lab growth because it's an entirely new product line for us, and of course, gives us one more element of menu differentiation with the reference lab. And so, I would say that, that is as successful as we have expected to be, and of course, that’s going to be really a global offering because it turns out pets get allergies everywhere, and there is pretty well developed. There’s actually more developed market in allergy in Europe than there is in the U.S. So, we would see that there is an existing business there and then there is the opportunity to develop the allergy business as we go forward in the U.S.

And then lastly kind of looking at the lab footprint expansion with Germany in 4Q, if that’s successful, is there something that you could kind of implement in Asia as well to kind of think about that same strategy or it is just too early to talk?

Well, I would say, having actually lived in Asia a long time ago, it is a little different geography, it is big. And the nice thing about Germany is you have got continental Europe and you can do the flights relatively straightforward on logistics network, and of course, DHL is well situated. Asia is just about -- it is a vast geographic distances. So, we are excited about Asia, we are excited about the 20% plus organic growth that we achieved in IDEXX in our Asia businesses. And the outlook is good there, but probably how we are going to continue to do that in the lab business will play out over time and probably, I am not sure I would see a core lab for the hemisphere in the same way we have it for North America and the Europe continent.

Thanks.

Thanks.

And we will go to Mitra Ramgopal with Sidoti. Please go ahead. Mitra Ramgopal - Sidoti & Company: Yes, hi good morning. Just a quick question on the lab business. I was just wondering as you look forward to the next year in terms of the guidance etcetera, are you counting on the growth coming mostly from just taking share or are you also betting that the market will – you are getting growth from the base business in the overall market?

Mitra, we are really not expecting very much growth from the market. As I mentioned, that we are remaining cautious on the economy. So, we are really thinking that growth in the lab business, our business really going to, it is going to come from really the impact of the innovations that we had. So, that can come in the form of acquisition, you know, increased – customer acquisition, increased customer loyalty and some higher utilization because of the value of the products, but we are not, I guess just to be clear, we are not seeing much impact on our growth from just a pickup in the general economy.

Right. And what you might call same-clinic sales or same-store sales, (inaudible), but we are cautious on that and grow as steady as you goes, not worst, but not better than it has been historically. I will say though, if the number of innovations we have at IDEXX is such that don't always bring them up. In the lab business, we introduced a new menu item in October. We are pretty excited about from a medical point of view and that is our complete blood count, CBC, which is on majority of standard profiles that our central lab has got an upgrade and one of its important parameter is (inaudible), which is really again at the forefront of advances in medicine and the value of the CBC. So, we are just, it’s that steady stream of new menu innovation that we almost take for granted right now, but each one is pretty exciting in its own rights that continues to set us in unique place in terms of the forefront of veterinarian medicine with our standard lab offering. Mitra Ramgopal - Sidoti & Company: Sure thing. Thank you very much.

We will go the line of Erin Wilson with Bank of America. Please go ahead.

Hi, just a quick follow-up. You provide, I guess, a metric on the percentage of Catalyst and ProCyte placements that are new customers to IDEXX. Do you have that breakout by geographies?

For Catalysts, that was very consistent across geographies. We saw that in the US. I mean, US and Europe would be the primary, the placement rating in Asia Pacific, relative to the other two is still quite small. And I would have to look up the ProCyte piece on that.

Okay. Great.

I will say though, speaking of Asia here and strong performance we have, we are very pleased with how Japan did. And part of that was the introduction of ProCyte in Japan, which is actually not surprising. If you think about it being extremely well-received, Japanese are very picky about their medical technology and they really demand the highest standard of excellence and reliability. And of course, ProCyte meets that standard and it's also manufactured in Japan. So, we really did have ProCyte and Catalysts and actually even the reference lab in Japan were all contributors to that good growth in Asia Pacific. It was certainly China and Australia and other places were also contributors, but we are in particular pleased with the Companion Animal business in Japan, which is a big market and one that overall our share in diagnostics is substantially lower than it is in other international markets.

We have no further questions. I will turn the call back to you, Mr. Ayers for closing comments.

Well, I want to thank all shareholders and investors for your continued confidence and for attending the call. I also want to take this opportunity again to thank all of our employees who may be listening to the call, and many do, because it is a good opportunity to get an overall update. And it is only because of our employees that we are able to continue to be successfully serving our customers with these kinds of innovations. So, with that, we are going to conclude the call, and we will be talking to you with our fourth quarter results in January.

And ladies and gentlemen, that does conclude your conference for today. Thank you for your participation and for using AT&T Executive Teleconference Service. You may now disconnect.