Welcome to the Piper Jaffray Companies conference call to discuss the financial results for the second quarter of 2009. During the question and answer session, securities industry professionals may ask questions of management. The company has asked that I remind you statements on this call that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements that involve inherent risks and uncertainties. Factors that could cause actual results to differ materially from those anticipated are identified in the company's reports on file with the SEC which are available on the company's website at www.piperjaffray.com and on the SEC website at www.sec.gov. Now, I'd like to turn the call over to Mr. Andrew Duff.

We are pleased with our improved second quarter results, which reflect a significant rebound in investment banking revenues, continued strong fixed income sales and trading, and important the operating leverage we have created in our business model. Investment banking revenues increased across equity financing, public finance and financial advisory. Equity capital market conditions began to improve during the quarter. We were able to develop creative solutions and raise capital for or advise our clients in a number of successful transactions across every one of our focus sectors. The return on the five IPOs that we were participated in during the quarter is up an average of 41% [inaudible]. Also, higher fixed income sales and trading revenues were driven by solid client activity, favorable trading spreads and improved asset valuations. In addition, we are realizing the incremental benefits from the investments we have made over the past 12 to 18 months. We are particularly pleased with the momentum in our public finance business. We have an internal calculation for tracking economic e-market share for this business. For the full year of 2008, our economic e-market share was 2.8%. At the end of the first quarter of 2009, our market share was 3%. At the end of the second quarter of 2009, it was 3.8%. This is the highest market share we have achieved since we began tracking it in 2004. This is also worth nothing that we are achieving these gains despite the non-investment grade segment of the public finance market stilling being essentially closed. This segment has historically generated a significant portion of our revenues. The public finance team has done a terrific job. Finally and importantly, our second quarter performance clearly demonstrated the significant operating leverage we have created in our business model. Compared to the first quarter of…

In the second quarter of 2009, we generated net income from continuing operations of $11.6 million or $0.59 per diluted common share compared to a net loss of $1.5 million or $0.09 per diluted common share in the same quarter last year, and a net loss of $2.7 million or $0.17 per diluted common share in the first quarter of 2009. Second quarter 2009 net revenues were $132.3 million up significantly compared to $97.7 million in the year ago period, and $83.9 million for the first quarter of 2009. Both investment banking and institutional brokerage contributed to the improved performance. First I'll comment on revenues beginning with investment banking. For the second quarter of 2009, equity financing revenues were $23.3 million a significant improvement from the comparative period, although still below our historical quarterly averages. U.S., European and Asian activity contributed to the improved second quarter performance. From a product perspective, we generated revenues across our product spectrum of IPOs, follow-ons, convertibles, private placement, pipes and RDs. Within the U.S. market there were 13 IPOs completed in the second quarter industry wide and we participated in five of them, including as sole book runner on Duoyuan Global Water, a leading China-based domestic water treatment equipment supplier. We currently have no public offerings on file, which is below the seven we reported on our first quarter call. I would note, however, that the files backlog is increasing a narrow slice of the equity financing market and not necessarily predictive. As Andrew commented, our public finance business continues to perform very well. The business generated $20.1 million of revenues up 32% compared to last year and up 53% compared to the sequential quarter. Activity reflected a significant flow of larger issues, as well as a continuing base of middle market issues. The…

Operator, we will now open the line for questions.

(Operator Instructions) Your first call comes from Steve Stelmach – FBR Capital Markets. Steve Stelmach – FBR Capital Markets: In terms of the muni side of the business, I know you guys did that acquisition the muni team in California I believe it was 2008. Can you give us some color on that team's production given California's sort of fiscal crisis and is there a backlog of deals that have yet to come to fruition there? Just any update would be helpful.

They remain relatively active it is a lot of K through 12 activity. They've continued to be able to access the market. I would share your observation, however, with the budget deficits at the state level and often at the local level. There may be challenges ahead, but so far they've been successfully accessing the market. Steve Stelmach – FBR Capital Markets: So you wouldn't characterize it as some backlog now that hopefully California's got their act together, at least as of today.

They've got an ongoing backlog that I'd say is similar to what's been here as they joined us back in '08. Steve Stelmach – FBR Capital Markets: In terms of the 19 new fixed income professionals that you guys mentioned, what's that compare in terms of percent growth year-over-year, quarter-over-quarter? How should we think about that incremental 19?

I would say probably, I'm just thinking for the total fixed income sales business it's probably almost 15% to 20% increase I would say in professionals. In total headcount, I should say.

Your next question comes from Devin Ryan – Sandler O'Neill. Devin Ryan – Sandler O'Neill: Just another question on the public finance, the recent additions seem to be paying off and you announced an additional hire yesterday. Is there still room there or, I guess, a desire to expand more or is it now just really about executing with the people you have as the markets open back up?

We continue to add in that area. We've got a footprint now growing on the east coast, which we had not previously had, and we've got people in Boston, Hartford, New York, I think further down the seaboard and there's plenty of opportunity there. So selectively right profile on the individual and their clientele we'd absolutely continue to expand. Devin Ryan – Sandler O'Neill: Sorry if I missed this just on fixed income generally, but can you quantify or even qualify kind of the overall level of client trading volume in the second quarter maybe compared to the first? And essentially what I'm trying to do is get some sense of how much of the revenue strength is attributable to trading volumes versus gains on improving valuations in the quarter.

Well, let me start by just saying that while significant portion of the fixed income sales and trading revenues were driven by trading profits, we did see very strong client activities throughout this year coming from the additional talent we added that we had just discussed with the 19 professionals. And we're also seeing additional activity in new products and additional credit products, as well as taxable municipals.

Let me just add a thought or two to that. As we commented on, we've been investing in that business fairly consistently in the last 12 months. As it's currently constructed, we'd anticipate annual revenues in the $65 million to $75 million range. We are going to continue to invest in the business and that may grow over time. Clearly, our run rate level is above that and that really does reflect the very favorable trading environment. Devin Ryan – Sandler O'Neill: So like $65 to $75 annual, okay.

In a normalized –

In a more normalized environment. Devin Ryan – Sandler O'Neill: In terms of equity underwriting, you spoke about being somewhat optimistic there. Do you think this could be a better capital raising summer than we general see given that there seems to be some demand by clients as the windows open and especially if equity markets remain relatively stable?

Potentially, it's rare, though, that you don't have some of the slowdown in August, which is frequently followed by a very active fall. But I don't see any signs that this would be they unique environment that you wouldn't have some kind of modest slowdown in August. Having said that, I share your observation what's come to the market is typically at the top of the range and several instances above and then traded quite well. Devin Ryan – Sandler O'Neill: Can you just give some more detail, sorry if I missed this as well, on the earnings allocated to participating stock awards and how this is calculated and how we should think about it going forward?

Just to clarify, we were required to adopt a new FASB staff position, which actually became effective January 1, 2009 because of our loss position in the first quarter we were not required to adopt it. Under this new staff position, we're required to allocate our undistributed net income to unvested restricted shares, or participating securities as they're called, and then to common shares. So that's where you see the bifurcation of the earnings in the release. So in essence what you're seeing now for the shares that are reported, both the basic and fully diluted, relate to just the common shares. The slight difference has to do with some small option dilution. The income that you see the $2 million that's allocated to participating shares, that relates to the income that we would attribute really pro rata between the common shares and 100% of our unvested restricted stock grants. Devin Ryan – Sandler O'Neill: So we should essentially think about it as some percentage of the net income before you kind of back out those shares?

Yes, so we're bifurcating the income in the same relation that you would bifurcate the shares between common shares and 100% of our unvested.

(Operator Instructions) Your next question comes from [Jeff Burston – AH Visante]. [Jeff Burston – AH Visante]: Just a question on normalization of the fixed income business, can you just talk about what you see happening that will in fact normalize this business and over what period of time you expect that to happen?

I think the dynamic that we're pointing to is the significant credit tightening of the spreads and the favorable trading environment it's been relatively unique for the last six months and as that would normalize. I'm not sure I can give you a specific timeframe, but when we just look at it over a longer economic cycle, it has been particularly favorable this spring, to some extent reversing the very, very unfavorable environment of the 12 months preceding it. [Jeff Burston – AH Visante]: So not related to volumes of financing but really spread tightening.

It's more spread tightening, and I would think the volume environment might actually improve.

There are no more questions at this time. I'll turn the conference back to you.

Overall, we are pleased with our recent performance and confident in our business as currently positioned. We'll continue to drive our business forward and work to sustain our improved performance. Thank you all for joining us this morning.

Ladies and gentlemen, that concludes our conference call for today. We thank you for your participation and ask that you please disconnect your lines. Have a good day.