Good day, ladies and gentlemen, and thank you for standing by. Welcome to the STAAR Surgical Third Quarter 2012 Financial Results Conference Call. During today’s presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be open for questions. (Operator Instructions) This conference is being recorded today, October 31, 2012. I would now like to turn the conference over to Doug Sherk. Please go ahead.

Thank you, Operator, and good afternoon, everyone. Thank you for joining us for the STAAR Surgical conference call and webcast to review the company’s financial results for the third quarter which ended on September 28, 2012. The news release announcing the third quarter results crossed the wire about half an hour ago and it’s available at STAAR’s website at www.staar.com. Today’s call is also being broadcast live via webcast. In addition, a slide presentation will accompany remarks by management. To access both the webcast and the presentation slides, go to the Investor Relations section of STAAR’s website at www.staar.com. If you are listening via telephone to today’s call, I would like to review the slides that accompanying management’s remarks. Please navigate to the live webcast as I have just reviewed and choose the no-audio/slides-only option. In addition, an archived replay and slides will be available on the STAAR website. Before we get started, during the course of this conference call, the company will make forward-looking statements. We caution you that any statement that is not a statement of historical fact is a forward-looking statement. This includes any projections of earnings, revenues, sales, profit margin, expenses, cash or other financial statements. Any statements about plans, strategies or objectives of management for future operations or prospects for achieving such plans, any statements concerning proposed new products, including expectations for success of the ICL, KS-SP IOL, nanoFLEX Toric IOL or other products in the U.S. or international markets, government approval of new products or developments or other future actions of the FDA or other regulators, the outcome of product research and development or any clinical study, any statements regarding future economic conditions or performance, the size of market opportunities, statements of beliefs and any statements of assumptions underlying any of the foregoing. These statements are based on expectations and assumptions as of the date of this conference call and are subject to numerous risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks are described in the Safe Harbor statement in today’s press release and in the Risk Factors section of our annual report on Form 10-K, investors and potential investors should read these risks. STAAR assumes no obligation to update these forward-looking statements to reflect future events or actual outcomes and does not intend to do so. In addition to supplement the GAAP numbers, we have provided non-GAAP adjusted net income and diluted net income per share information that excludes manufacturing consolidation expenses, gains or losses on foreign currency, fair market value adjustments for warrants and stock-based compensation expense, we believe these non-GAAP numbers provide meaningful supplemental information and are helpful in assessing our historical and future performance. A table reconciling the GAAP information to the non-GAAP information is included in our financial release, which is available on our website and in our slide presentation. Now, let’s turn the call over to Barry Caldwell, President and Chief Executive Officer of STAAR Surgical.

Thank you, Doug, and good afternoon, everyone. Thank you for joining us today for review of STAAR Surgical progress during the third quarter 2012. With me today on the call is Deborah Andrews, our CFO. Deborah joins me and entire STAAR organization in offering our thoughts and prayers to all of you on the call today who have been impacted by Sandy. We know that watching the storm on television doesn’t come close to understanding the devastation and loss that has occurred in the Northeast Corridor and we wish everyone as rapid recovery as is possible. I’ll start our call this afternoon with an overview of the quarter and also a review of our 2012 key metrics in light of the third quarter results. Deborah will provide a detailed look at our third quarter financial results and discuss progress with our manufacturing consolidation project, which we call project common. Before we take your questions, I will provide some additional operational updates. Now, let’s look at our overall revenue growth in the quarter, which came in at 4%, which drove our sales to $15.9 million in the quarter. On the upside, the Visian ICL revenue grew 15% to establish a new quarterly revenue record for the product line. ICL sales were 57.4% of total sales, which was also a new all time level. On the IOL side of our business, sales were down 8%, which netted our increase and total core revenues to 5% for the quarter. As we have planned, the defocus other product category continue to decline at a rate of 11% during the quarter. While our revenue growth was less than we would have liked, we did execute very well in several areas during the quarter. This include, continued expansion of our gross margin level, generating cash from…

Thanks, Barry, and good afternoon, everyone. Since Barry has already discussed revenue highlights, I’ll be focusing my comments on operating expenses, our gross margin expansion, GAAP net loss and adjusted net income, and cash. I’ll close with an update on our manufacturing consolidation project. First, let’s review our operating expenses. Our total operating expenses including manufacturing consolidation expenses increased 15% to $11.3 million. Manufacturing consolidation expenses were over $700,000, an increase of $600,000 over the prior year. Our operating expenses before manufacturing consolidation expenses were $10.5 million, up 10%. This increase was primarily due to our investment in global marketing and selling expenses, including the addition of 14 new employees and $400,000 related to the change of distribution in Spain to a direct model. We estimate the annualized costs of the headcount additions will be approximately $2 million and the expense associated with the transition in Spain will continue through February 2013, at which time, the normal logistics cost of being direct in the market will begin. Total operating expenses also nearly increased $300,000, due to non-cash increase in our stock-based compensation. Our GAAP net loss was break-even on a per share basis, which was the same result as in the third quarter of last year. Through the nine-month period, GAAP net loss was a penny per share as compared to net -- GAAP net income of $0.04 per share in the prior year. Moving on to our gross margin results. Our gross profit margin was a record 70.4%, up 190 basis points over Q3 2011. This improvement in gross profit margin is primarily due to improved ICL mix, but is also due to improved ICL and IOL manufacturing costs, and higher ICL average selling prices. ICL revenue represented 57% of our total sales compared with 52% in the third…

Thank you, Deborah. Now, let’s review some additional key operational updates, which should help drive our results. First, on the product development area, we continue to make progress on key projects which will help drive both the ICL and IOL growth in 2013, as well as 2014. This include, good progresses made under Visian for ICL Version 5, which will be preloaded and include an aspheric optics. This project is on track to commercialization by mid-2013. Secondly, our engineering team has developed some new concepts on the Visian ICL V6 or Version 6. These concepts are designed to make the ICL more forgiving, which would allow for better sizing accuracy. These concepts could lead to some new patentable position. The technology also -- V6 technology is also designed to incorporate a multi-focal or presbyopic optic. We are working on this technology internally as well with several external companies and we can see some very good possibility. Our nanoFLEX Toric IOL for Europe is taking longer to rollout than we had planned. This is mainly been due to surgery schedules during the past quarter. We expect to have those marketing evaluations completed during the fourth quarter and have good expectation for this product next year. Finally, we’ve had a setback flex on the nanoFLEX II IOL for the U.S. The FDA did not agree with our position that this was an annual reportable change. We plan to do more -- a more thorough detail on our approach and an official reply to the FDA shortly. This could, however, turned out to be an OUS or only outside the U.S. product at least initially. Now, let’s talk about some of the highlights at the recent ESCRS, European Society Cataract & Refractive Surgery Meeting, which was held in Europe. As we noted before,…

(Operator Instructions) Our first question is from the line of Matthew O’Brien with William Blair. Please go ahead. Matthew O’Brien - William Blair: Good afternoon. Thanks for taking the questions.

Hi Matt. Matthew O’Brien - William Blair: Hey, Barry, just was hoping for a little bit more color on Korea. You know the commentary about end market softness is something that we haven’t heard before. And it’s a little bit concerning. Is there something more there as far as follow-up from patients from the couple of years ago that are causing some hesitancy among surgeons at this point. And then when you talk about getting up to 25% from 30% penetration today, what gives you the confident. I understand 4c is a very eloquent product but is there something that you’re hearing specifically from your distributor and from the surgeons that they’ll give you that confidence?

Good question. And it is first time, that we’ve seen end market demand being less than a quarter than the prior year. Certainly, since I have been here but I think that’s true in the history of our sales there in Korea. We’re not hearing anything negative about ICL or results from the ICL. It’s actually just the opposite but there is some belief here. And again as I said I’m heading to Korea tomorrow and we’ll be meeting with our distributor for a couple of days going through exactly where they are. So I’ll gain more knowledge then and should have more knowledge to share in the breakfast meeting in Chicago that’s on Saturday, November 10. I think I said 11th as I was speaking. Our distributor in Korea, Woo Jeon, they’ve done an excellent job for us and for the ICL Technology. I have spoken glowingly about them many times. I believe there were some things during this year earlier in the year and maybe still up from now that has been focused our organization a bit and I think I mentioned this before. It’s been concerning. We’ve worked with them to come up with a plan to hire a STAAR direct employee to work day-to-day with our distributor. Matter of fact, we’ll be seeing two or three candidates while I’m in Korea. The 25% objective is one that Woo Jeon distributor set for the next couple of years. So I don’t believe they’re back and off of that objective and that’s one of the things I want to learn while we’re working with them over the weekend. Matthew O’Brien - William Blair: Okay. Just a follow-up on that a little bit more. I know you’re not over there yet at this point but do you have any sense for how long this may persist because if I recall a couple of years ago, you had an ordering issue with them. That snapped back pretty quickly but does seems like it’s a little bit more fundamental in terms of their selling efforts?

I think that’s true, Matt. If you look at the history of Korea sales, there can be big quarterly swings just based upon their inventory levels and where they are based on their demands. Remember their demands are the highest during the first quarter and the third quarter each year. So they generally buy more in the fourth quarter and the second quarter in preparation for that. But I will be learning more and this is different though than just filling inventory and replacing inventory. It is in the demand side. So I do believe it’s something that we can turn around quickly. It may have something to do with the economy in Korea. We’ve not heard that before and nor do we have any good insight on total reflective procedures in Korea like we have in China. I mean, it was very evident during mid-to-late second quarter event that reflected procedures in China. We’re not the same as they had been. Matthew O’Brien - William Blair: Okay. And then just one from me if I may, can you -- you saw some nice growth out of the U.S. and China and India this quarter. Can you give us a sense for more of same-store sales from somebody that’s been using 6 to 12 months. What kind of reorder rates you see there versus the growth coming from opening up new accounts?

Well, in all three of these markets, we’re really focused on penetrating accounts, rather than training new surgeons. I know in the U.S. it would only be a handful of new surgeons that have been trained this year entirely. We do see, though, some positive sign from our consumer media worker. As a matter of fact, in the U.S. right now we’re generating that may got some of the lot but to us as a lot now at least initially we’re generating 12 to 15 patient referrals from our social media work directly to our customers. And I think that’s part of the reason that 20% increase in our civilian accounts during the third quarter is pretty strong compared to what we think is going on in the market. Same thing is true in China. We are training a lot of surgeons at least at the first level but we’re training them at advanced level. And this is the kind of training we had just weekend before last in China and our response there was very positive. And we generally see very good increase in usage from those surgeons once they go through the second phase of training. Matthew O’Brien - William Blair: Okay. Great. Thank you.

Thank you.

Thank you. And we ask that you please restrict yourself to one question and then one follow-up and then re-queue if you have any further questions. Our next question is from the line of Jason Mills with Canaccord Wealth Management. Please go ahead.

Thank you. Barry, can you hear me okay?

Jason, yeah, we can.

Thank you. So Barry, one of the questions I was going to ask on Korea have been addressed but moving to Japan, perhaps you could give us a little bit more color about the ICL business in Japan there. What do you expect in the fourth quarter then so what you’ll expect over the next 18 months or so out of Japan. When can that given the Toric, can that accelerate? What are your thoughts there?

A good question on Japan. We have very high expectations for the Japanese market. And as you know, the demographics there in terms of higher rates of myopia and also higher rates of stigmatism play right in hands with the Visian ICL technology. We’ve seen very good growth in the two large refractive centers there, Optical Express and Shinagawa and as the results indicate units doubled during the third quarter as compared to a year ago. Those accounts began using the CentraFLOW technology during the third quarter. And we think overall that’s going to help particularly those accounts a lot more because they are both very much geared towards procedure timing and how quickly they can move patients in and out and we foresee CentraFlOW technology is one that helps patient flow significantly. So our expectations are quite high. My expectations are higher growth than what we’re seeing right now in Japan because of the opportunity. We’re just marketed on the ground floor here of the opportunities we have in Japan and getting to our market share level like we have in Korea. Given that we have a direct organization in Japan is something that should be clearly in our short-term window in terms of objectives.

Okay. A little bit of a tougher question, I’ll take a shot at myself a little bit here too. The performance over the last couple of quarters, there has been some highlights for sure and then some emerging disappointments. Every time we see something that was disappointing one quarter, it bounces back in the next quarter a bit and then we have an emerging disappointment in that quarter. I certainly got the strong personally throughout most of this year. And so I guess, what can you tell us that gives you the confidence that we don’t see any additional emerging disappointments that while you may have a bounce back in area that this quarter was weak for you, we don’t have something else that pops up. Because it seems like it’s like give and take that resulted in a couple of quarters here where it’s been a similar sort of discussion on this conference call. We had some highlights but overall there is a missed expectation. What’s more realistic way to look at the growth here for the near-term?

Really good question and you know particularly on the revenue side, I totally agree with the disappointment. We’re disappointed here. This is not what we expected for the year. We seem to be doing really well until you picked this up. But I know, we haven’t done a good job for you since you initiated but we also know and kind of what’s happened, I think the last two quarters is something and it’s in a major market, it’s raised its ugly head. Last quarter, it was China and to some degree, Korea. This quarter we’ve retuned to some decent growth in China but not -- it should be twice that rate approval back on our normal pace. And Korea raised its’ head, certainly unexpected in terms of consumer demand for the product. And what it’s going to take when you go back and think about those 11 key markets on which we’re focused, we’re dependent on three or four key markets overall and if something goes wrong in one of those three or four key markets on the ICL side, it brings everything down. As I pointed out at the Korea results would have just been flat. We would have met our metric of 25% ICL growth and we would have been happy. No one here expected that demand was going to be less during the third quarter. I do note to Jason that the fundamental things we’re doing with the business are very solid. And very similar to the position we’ve got financially with this company. Because two or three years ago, STAAR would have had a tough time with two consecutive quarters like this in terms of only 4% revenue growth or something like that. But as you can see, we built a solid financial foundation and even in quarters like this, we’re generating good cash for the business. And our cash position is growing quite nicely, which gives us lot more flexibilities than we’ve had. I also know that 14 people that we’ve hired, these have been good hires. They are already showing some results. We were late in hiring some of these folks during the year. And I think I even indicated that as early as the first quarter call. I would have liked to gotten these folks on board sooner so they could have produced results. And then finally, I’d say the manufacturing consolidation is going to really make data much stronger foundation. And we’re expecting 2013. It’s going to look much better for the company and 2014 is going to take another major report.

Okay. Thanks for the detail. One last question, I’ll get back in queue. Any update on the ICL in the U.S. -- Toric in the U.S, sorry.

You mean with the FDA.

Yeah.

Okay. So let me give you a quick update with the FDA on two fronts, first with CentraFLOW technology. We did make a submission to the FDA on October 9. It’s a 180 supplements which means they’ve got 180 days I’m sorry to reply to us and this was a submission to get approval of the CentraFLOW or the port, the actual port right in the center of lens on our current ICL that we have today in the market. Then secondly, we are knee deep into a, I call, a major and I have these to use the word resubmission to the FDA on the Toric ICL, which -- what we’re doing is we’re putting together a very complete, every question, every data point in regards to the Toric ICL. We’re working with outside consultants as I mentioned earlier. And this will be submitted on November 16. Now, as result of that submission, there are three things that could happen. They could accept our submission and approve it. They could say the submission is complete and pass it onto the panel or they could disapprove it. Now, if they were to do the last thing if they were to disapprove it, we could -- we had three options. We could redo the study. We could walk away from the U.S. market, not likely we would do that or we could appeal their ruling. And there are some technical reasons that could support an appeal. So, while there’s no really concrete movement in terms of Toric with the FDA, we’ve made some significant progress going forward with our submissions in our discussion with them.

Thank you. And our next question is from line of Chris Cooley with Stephens. Please go ahead.

Thanks for taking my question.

Hi, Chris.

Most of my question on the ICL has been addressed. If we can maybe just touch base kind of similar vein on the cataract business, it’s been a little bit of a bane to the existence here over the last kind of 18 months. And of the lower base and with the premium pricing as you get some new products, one would have thought you would have at least kept pace with prevailing market rates of growth. What can you talk to us about here tonight, from an execution standpoint, should give us added confident that can at least return to a market rate of growth sustainably going forward and then I have a quick follow-up? Thank you.

Well, I’m not sure today we can tell you what market rate growth is for IOLs. I did sight the two major competitors in the IOL market, though they don’t specifically call out their IOLs. It’s pretty clear in Novartis Alcon’s result that they are sighting their decline in sales overall to procedure decline in cataract and also pricing in the European market that’s two to things they refer too. So, I’m not sure what that rate is, but I’m sure that I have said it quite a bit that we are going to get to 5% to 10% growth rate in IOL through the strategy we have in place. Now, we have not been strong on getting to recent IOL products to market after we’ve got proven. First one is the KS-SP that the single piece preloaded acrylic IOL which is important in Europe and in Japan. We started shipping this product in limited fashion toward the end of the quarter and the results from surgeons, the feedback has been excellent. As we indicated in our comment in Europe and three basic markets, Germany, Italy and France, the distributors of all doubled their forecast for next year. We are still in a limited product availability of that during the fourth quarter. So we are not going to meet their demand during the fourth quarter. But during the first half of next we should be able to meet their demand. So, that’s product it’s been accepted at a higher rate than we anticipated. So, we clearly see growth there. Now, we also know that in Japan and Europe we loss some IOL sales from our three piece customers, who have been waiting for that single piece product and they move to another single piece options and now we’ve got work to get them back. The second product is the nanoFLEX Toric IOL which is a single-piece Collamer lens for Europe. We want to do a pre-market launch first and we had surgery setup during the third quarter and as it turned out surgery schedules didn’t cooperate well with the surgeons with whom we were working and most of those did not get completed during the quarter. We believe that will be completed during this quarter. Now, that’s a product that we can get a good price on and good margin and now the distributor can as well. So, we believe that’s a products that will allow us to expand in Europe into some additional countries in which will not today, because of the cost of goods on the more generic type IOLs.

Okay. And then just maybe -- just clarification. I want to make sure that I get expectations right here in the fourth quarter. When I think about your ICL growth you stated you don’t expect to see second half growth rates reaching that 25% level prior guidance for the full year had been near 20% in that category. And I think you mentioned you expect to see a sequential increase just want to be clear is that an acceleration sequentially in the reported rate of growth for the ICL or is that a increase just in terms of dollars that you are expecting in the 4Q and what’s driving that increase sequentially in the category. Thanks so much.

Yeah. I think overall we are talking about the growth rate of fourth quarter will be higher for Visian ICL in the third quarter growth rate, which was a 50% growth rate that would mean that sales in the fourth quarter would exceed the $9.1 million that we had during the third quarter and thus we will establish another high water mark in terms of Visian ICLs on a quarterly basis. A lot for fourth quarter is going to depend on Korea and a typically fourth quarter is a good order in quarter for them because they anticipate their procedures. They are going to take place in the first part of the year and they are very conscientious distributor and they want be inventory there for their doctors are ready to go. So a lot will depend on that market, a lot will depend on if we see a full rebound in China as I previously said didn’t expect that till next year but I would say the rate of growth in the third quarter in China is 52%. Its been higher than expected to see in the third quarter if it continues to grow, we continue to get some good news from surgeons there. I think the idea that patients in China are asking questions about LASIK complication are good for the ICL long term and maybe even shorter term to get back to our growth rate quicker then LASIK might get back to the growth rate there at.

Thank you. Your next question is from the line of Bruce Jackson with Northland Capital Markets. Please go ahead.

Good afternoon.

Hi, Bruce.

So, if we could just talk a little bit more about the FDA Toric application is it, are using the same data that you went to them with the four and is the discussion centering out in the same issues that you have been going back in fourth with previously or is there anything new that they are looking for?

Okay. Well, yeah, good question. Part of what our outside observation have been with all the communication back and forth with the FDA is that it’s very confusing and it’s frustrating. I think its confusing and frustrating for STAAR and I think also for the FDA. So our decision was that we were going to repackage everything together in a way that’s more manageable, more easy to understand and remember there are two data sets that with the original data sets that were submitted and then there was the audited data set that was audited by third-party group. And it appears that may have been some confusion back and forth in regards to which data sets. So we put both data sets in this submission. We put all of their questions with the answers resubmitted. Remember at some point during the last couple of years we were getting repeat questions. So we put it in a format we think which will be much easier for them to understand and follow and also format in which it’s easier for us from which to appeal if needed.

Okay. And then, just a follow-up question on the IOLs in Japan, so you launched the KS-SP and you talked about the demand in Europe, and affect that you’re going to be limited launch? Is that also the case in Japan, is going to be a limited launch in Japan for the fourth quarter?

Yeah. Bruce, it is. Yeah. The KS-SP inventory in total has been allocated between Japan and Europe, and right now we don’t think we’ll be able to meet the fourth quarter demand, but we are working on that and it’s the same kind of reception we’ve experienced in Japan as we experienced in Europe, though we started in Europe with the initial launch.

Okay. Great. Thank you.

Thank you, Bruce.

Thank you. And our next question is from the line of Raymond Myers with Benchmark. Please go ahead.

Thank you. Barry, you touched on this a couple of times, but I was hoping you could specify some dollar amounts of the contribution from KS-SP launch in the fourth quarter and next year?

My guess is going to be in the neighborhood of $0.5 million in revenue.

An incremental $1 million of revenue?

Yeah. Assuming we can meet that demand, that’s the demand that we put in or ask for in terms of the product need.

And is that…

… that’s the first, I’m sorry, that’s the first number, and it’s not the increase number, so just I get it straight.

So it’s an incremental $1 million in the fourth quarter?

No. $0.5 million.

$0.5 million.

Yeah.

In the fourth quarter?

Yeah.

And is that incremental to the third quarter or is some of that already in the third quarter?

There is only a little bit of that in the third quarter. I don’t know, Deborah, do you have a sense for how much KS-SP…

Very little.

Yeah. Very little.

Okay. That’s perfect. Then the next question you mentioned on the call that middle of next year you expected the Version 5 to be commercialized, what are the milestone to doing that and can you elaborate on that, it sounds like an important point?

Sure. On the Version 5 there are two key features to that, one is putting it preloaded and as you know we have been working with an external company on some proprietary technology that will allow us to preload Collamer not just ICL, but also IOLs. So once we get the Version 5 in ICL this is technology we’ll transfer over through our nanoFLEX and our nanoFLEX Toric IOLs. The second aspect is an aspheric optic and we have been making progress on that here internally. So we are on track in terms of where we thought would be with that product. And I would say, when you listen to surgeons, since particularly those are using the CentraFLOW technology now that was their first overall improvement they would have like to seen in the technology. Second, was to get it into a preloaded fashion, because it makes it much easier for the surgeon, for the scrub nurse and then also takes a lot of -- significant amount at least percentage-wise time out of the procedure while patient is on the table. So those are the two key features and we feel very good about where we are overall and been able to get that, that initial commercialization, of course, would come in European market.

Okay. Right. And okay, thank you very much.

Thank you, Ray. Happy Halloween.

Yeah. Thanks.

Thank you. Our next question is from the line of Jim Sidoti with Sidoti & Company. Please go ahead. Jim Sidoti - Sidoti & Company: Good afternoon. Can you hear me?

Hi, Jim. Yeah. We can. We hope you are well. Jim Sidoti - Sidoti & Company: Yeah. Yeah. It’s a little dark here. But other than that everything is fine. Hoping to get power back soon. Question I had regarding Korea. It sounds like that, Korea and the weak IOL markets, where then primarily responsible for the lower than expected sales in the quarter. Now you mentioned you were hiring a direct person for Korea? What will the responsibilities for that person be?

Yeah. Good question. That person will manage the day-to-day activities in Korea. Woo Jeon has done a great job so far. We haven’t had to provide any direct support to Woo Jeon in the Korean market. It’s just become such an important part overall of our business and we need to work to take it for the next level. They’ll be working directly with Woo Jeon on a day-to-day basis. We’re targeting key customers. One of the areas of improvement we want to look at in Korea is increasing our rate of Toric sales in Korea. As an overall percent, Korea is one of our lowest markets in terms of Toric versus ICLs. So there is certainly an opportunity for us to work to increase to that. So they’ll work both from a sales and clinical perspective marketing between Woo Jeon and our customer -- and their customers. Jim Sidoti - Sidoti & Company: And was there any pushback from the distributor to adding this direct representative there or were they on board with this?

Absolutely there was pushback. I think, anytime, that company that’s going through a distributor puts a direct employee in the market. There is always the concern that the company is going to flip the market and go direct. That’s absolutely not our intentions whatsoever. We want to work with Woo Jeon to improve the business. I’ve already sent my presentation to them a week ago for our meeting this weekend and it’s very, very clear in my presentation with them that we want to work with them and support them. We have no intentions whatsoever to go direct in the market. Jim Sidoti - Sidoti & Company: Okay. And then just follow-up on the IOL market, was there any reimbursement change or anything that you could point to explain the decline there?

No. Reimbursement changes during the quarter, I mean, the two key things I think in my mind would be not having the KS-SP available sooner in the quarter. And then secondly, what seems to be kind of overall procedure pressure during the quarter. Jim Sidoti - Sidoti & Company: Right. That’s where, I mean, we look at the procedure pressure, do you have anything you can point to is to why that occurred?

No. And we will get shortly gets the U.S. data from market scope. There is not really any good quarterly data available outside of the U.S. that there is on an annual basis but not so much on a quarterly basis. Jim Sidoti - Sidoti & Company: And of those two events, the IOL procedure pressure and weaker sales in Korea, what do you think kind of more significant impact on your quarterly results?

Well, I think, it would have to be Korea, given that the gross margin on the ICL is so much higher. That -- I mean as I said if, Korea, taking Korea out of the mix we have 26% growth rate and, overall we have been very happy with that. And certainly, that’s the kind of growth rate that will be inline what we would expect from Korea on a quarterly basis. So, if Korea had been there the, I think the topline revenue expectations would have been met and gross margins would have been higher. And we would have been even though the increase manufacturing costs on -- for the consolidation project we will then on a GAAP basis profitable. Jim Sidoti - Sidoti & Company: All right. Thank you.

Thank you, Jim. Good luck.

(Operator Instructions) And we have no further questions at this time.

Great. Thank you, Operator. Let me reiterate the dates that we are going to be out in the market on Saturday, November 11th there is an Investor/Analyst Breakfast in Chicago, I’m sorry the 10th, I have done that twice, November 10th, Saturday. The Stephens Conference November 14th in New York City, the Piper Jaffray Healthcare Conference, November 27th in New York City and if you’d like to catch up with us in any of those destinations, please feel free to give us a call. We thank you for participating today. We hope we’ve answered all of your follow-up -- your questions. But if you have more please feel free to give us a call. Have a good evening.

Ladies and gentlemen, this concludes the STAAR Surgical third quarter 2012 financial results conference call. Thank you for your participation. You may now disconnect.