Question-and-Answer Session
Operator
(Operator Instructions). Our first question comes from Brian Freed – Morgan Keegan.
Brian Freed – Morgan Keegan
Real quick, just a couple or three questions, first, it looks like there's a $1.2 million reversal on the quarter. Can you give us a little more detail around that and also since there's been some kind of one signs in the last couple quarters, can you give us a little more clarity on where a normalized trend line from an OpEx perspective would be excluding those items?
T. Kendall "Ken" Hunt
Cliff, would you address that please?
Clifford K. Bown
I’m not sure where you referring to the $1.2 million reversal in the quarter, Brian?
Brian Freed – Morgan, Keegan & Company
Okay, that might just be a misunderstanding on my part, but so if there wasn’t then that’s good. So current trend line is where the operating income came into this quarter then, correct?
Clifford K. Bown
Yes, if you look back across the year-to-date, we had $2 million of reversal in the first quarter of 2009. That $2 million was related to the reversal of our long-term incentive-based stock compensation where we didn’t believe that the performance targets that were set associated with those long-term incentives would be met. But there weren’t any similar reversals in the second quarter. So the second quarter should reflect a normalized operating expense base with the exception of changes in currency rates going forward.
Brian Freed – Morgan, Keegan & Company
And below the operating line is where I missed the other income line. It looks like there was kind of a one-time thing. I’m sorry, that was just kind of a mistake on my part. Can you talk a little bit about what happened in other income in the quarter?
Clifford K. Bown
Sure, what’s in other income and expense are two things. The first is the exchange gains and losses related to the changes in currency rates associated with transactions that are denominated in currencies other than the functional currency of the country in which they are located. With the strengthening of the euro in the second quarter compared to the dollar, and that’s not relative to the same period last year; that’s relative to the rate at the end of March 31st, 2009. With the strengthening of the euro versus the dollar, we ended up with exchange gains in this quarter.
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