With Broadcom’s (NASDAQ:BRCM) first quarter earnings and its growth potential through its acquisitions, will its largest shareholders add to their current holdings? 650 institutional firms indicated owning shares of Broadcom Corp. (NASDAQ:BRCM) in Q1 2012. These firms reported owning a total of 426.186 million shares on 03/31/2012. The shares closed at $39.30 on 03/31/2012.

A Closer Look: Broadcom Earnings Cheat Sheet>>

Here are the ten largest positions in Broadcom Corp. at the end of March 31st, 2012.

Price t rowe associates inc held 44,585,774 shares on 03/31/2012 worth $1,752,220,884. This brought the portfolio total to 0.53%.

Fmr llc held 23,333,171 shares on 03/31/2012 worth $916,993,602. This brought the portfolio total to 0.17%.

Vanguard group inc held 20,841,252 shares on 03/31/2012 worth $819,061,188. This brought the portfolio total to 0.11%.

State street corp held 18,802,924 shares on 03/31/2012 worth $738,954,899. This brought the portfolio total to 0.11%.

Clearbridge advisors llc held 15,048,101 shares on 03/31/2012 worth $591,390,358. This brought the portfolio total to 1.11%.

Blackrock institutional trust company n.a. held 14,616,806 shares on 03/31/2012 worth $574,440,465. This brought the portfolio total to 0.13%.

Invesco ltd. held 12,481,307 shares on 03/31/2012 worth $490,515,356. This brought the portfolio total to 0.25%.

Capital research global investors held 11,520,000 shares on 03/31/2012 worth $452,735,991. This brought the portfolio total to 0.19%.

Oppenheimer funds inc held 9,515,534 shares on 03/31/2012 worth $373,960,479. This brought the portfolio total to 0.31%.

Bank of new york mellon corp held 8,752,729 shares on 03/31/2012 worth $343,982,243. This brought the portfolio total to 0.13%.

Knowing which stocks have institutional support will help improve your investing skills, and teach you how to ride the waves of strong moves. In fact, “S = Support is Provided By Institutional Investors & Company Insiders” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

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Yahoo says its new browser will allow users to see a visual preview of webpages and search results before clicking on them, instead of the normal links returned by current browsers.

The desktop version of Axis exists as a plug-in for a user’s current browser and sits in the lower left hand corner of the screen. Users can access it by simply typing in its search field, which will then expand the browser and all of its features.

The mobile version for iOS offers the same preview experience as the desktop version and also connects with Axis on your desktop, offering seamless browsing between wireless devices and desktops.

No word yet on when Axis will be available for Android or Windows devices.

Investing Insights: Here’s Google’s Vision For the Future.

After closing 3.25 percent higher during regular trading yesterday, Chesapeake Energy Corp. (NYSE:CHK) gained another 2.37 percent in pre-market activity today. CNBC reported that BlackRock Inc. (NYSE:BLK) has been aggressively buying shares in the troubled natural gas giant and now holds around 4 million to 5 million shares.

Facebook (NASDAQ:FB) has now logged a two-day winning streak. Shares also continued to climb higher in late trading. On a conference call with brokers, lead underwriter Morgan Stanley (NYSE:MS) explained that customers caught up in the initial public offering debacle will not have to pay more than $43 per share. Shares traded as high as $45 per share, thus the bank will be responsible for filling in the $2 gap. Shares are down 1.67% in pre-market activity Friday.

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VeriFone Systems Inc. (NYSE:PAY) shares are crashing over 10 percent in pre-market trading hours. The company reported that net income in the second-quarter fell 42.5 percent to $14.5 million (13 cents per share), compared to $25.2 million (27 cents per share) a year earlier. On the positive, revenue increased 61.4 percent to $472 million. “We are very pleased with our performance, particularly the acceleration in organic growth and the increase in Hypercom-brand sales,” said Douglas G. Bergeron, Chief Executive Officer. “We remain confident in our outlook for the year. VeriFone is continuing to prove that widespread incumbency combined with market-leading innovation is a winning formula for the payments marketplace.” Verifone and eBay Inc. (NASDAQ:EBAY) are currently planning on bringing PayPal accounts to cash registers at brick-and-mortar stores.

Despite falling almost 7 percent on Thursday, shares of Tiffany & Co. (NYSE:TIF) are still lower in premarket trading. The luxury jeweler recently reported flat net income of $81.5 million (64 cents per share) for the first-quarter, compared to $81.1 million (63 cents per share) a year earlier. Michael J. Kowalski, chairman and chief executive officer, said, “In terms of our sales for the first quarter, regions outside the Americas performed generally as expected. However, the Americas region underperformed, continuing a soft trend that began in the last quarter of 2011 and compounded by the difficult comparison to substantial sales growth in last year’s first quarter. These sales results led to net earnings modestly trailing our expectations.”

Investor Insight: New Tech vs Old Tech: The Battle Continues

4 Stocks Attracting Heavy Trading Interest

Delcath Systems, Inc. (NASDAQ:DCTH): Delcath Systems is at 13.333M shares, and Spot Secondary is $1.50. For the offering, Cowen and Wedbush behaved as joint book running managers. Today, shares of Delcath Systems, Inc. trade 36.97% lower.

Mentor Graphics Corp (NASDAQ:MENT): According to Mentor Graphics Corp, $110M remains for share repurchases, and the company expects purchases during the year to counter the share issuances from programs compensated by equity. The company also states that Q1 headcount dropped by 10, and because production capacity is increasing, an increase of shipments of Veloce2 emulation should begin in Q2. The EPS during Q1 is $0.30 and beats by $0.06. Revenue is +7% year-over-year at $247.9M and misses by $5M.

A Closer Look: Mentor Graphics Earnings Cheat Sheet>>

rue21, inc. (NASDAQ:RUE): The board for rue21 has agreed upon a $50M share repurchase program in order to repurchase the company’s common stock.

America’s Car-Mart, Inc. (NASDAQ:CRMT): America’s Car-Mart reports a EPS of 97c during Q4, consensus 91c. The company also reported a revenue of $113.5M  and consensus of $120.74M.

2 Torched Stocks and 2 Stocks on Fire Friday

In the Red:

VeriFone Systems Inc (NYSE:PAY): Yesterday, VeriFone reported Q2 results that were stronger than expected, but the company struggles after providing weaker than expected guidance for Q3 and reestablishing the outlook for FY12. Although the company expects a strong demand for products, it may be hurt by the strength of the American dollar versus the euro. Following results, Deutsche Bank maintained its Sell rating on the stock and seemed skeptical about the company’s statements.

A Closer LOOK: VeriFone Earnings Cheat Sheet>>

Tiffany & Co. (NYSE:TIF): Friday’s sell-off is a sign that Tiffany (NYSE:TIF) investors worry it’s Q4 estimates are too optimistic. The headwinds hurting the jeweler are macroeconomic, Barron’s says, and not due to missteps by the company. The stock looks cheap. At 13.9x forward earnings, its price-to-earnings ratio is the lowest since 2009 — offering an opportunity for patient investors willing to wait for the economic headwinds hurting Tiffany to subside.

In the Green:

Uroplasty, Inc. (NASDAQ:UPI): Uroplasty shows good performance since its FQ4 results beat estimates. Global sales rose to 39% year-over-year, and U.S. sales increased by 63%. U.S. numbers rose because of increased Urgent PC Neuromodulation System sales accompanied with a 53% Macroplastique sales increase. JPM securities have upgraded Uroplasty shares to Outperform.

Post Holdings Inc (NYSE:POST): Post Holdings have reported an EPS of 39c for Q2 and a consensus of 48c. Revenue for Q2 totalled $250.5M and a consensus of $253.80M. Because of the recent separation from Ralcorp, post management expects an adjusted EBITDA in the range of $210M-$220M for twelve months. The Company’s guidance will be affected by management’s wish to stabilize market share via trade and pricing strategies as well as adequate investment in advertising and promotion, in order to support its many brands.

Apple & Facebook Head This Way, AT&T & Nokia Head That Way

In the Red:

Apple Inc. (NASDAQ:AAPL): According to Piper’s Gene Munster, Apple may reach $1,000 over the next few years because the company will release a totally redesigned iPhone, the Apple TV set (price at $1,500-$2,000), limited iPhone subsidy cuts, constant margin strength, demand in China, rising tablet sales, and the adoption of enterprise Mac/iOS.

Featured Reading: Will Apple at $1,000 Become a Reality?

Facebook, Inc. (NASDAQ:FB): According to PocketLint.com, Facebook may purchase Opera Software, owner of the Opera web browser. Facebook is considering an expansion into the browser space making them a competitor of Google Chrome, Microsoft’s Internet Explorer (NASDAQ:MSFT), and Mozilla Firefox.

In the Green:

AT&T, Inc. (NYSE:T): Yesterday, AT&T revealed its first prepaid side slider smartphone, the Galaxy Appeal. The Samsung product will cost $149.99 and will be sold at Walmart beginning June % and at AT&T stores beginning July 15. The phone possesses a 3.2 inch touch screen, a 3-megapixel rear-facing camera with video and 3x zoom. Shares are in the green today.

Nokia Corporation (NYSE:NOK): Nokia announced that the Lumia 610 will be the most inexpensive Windows Phone mobile and will be released in June. Though Microsoft (NASDAQ:MSFT) used billions of dollars last year to acquire Skype, the phone does not run Skype because the program requires 512mb of memory, and the new device offers only 256mb. Shares are bouncing higher nicely Friday.

Market Recap: Markets SLIDE into Holiday, Facebook Fiasco Update

Markets closed down on Wall Street today: Dow -0.62%, S&P -0.24%, Nasdaq -0.10%, Oil +021.%, Gold +0.97 %.

On the commodities front, Oil (NYSE:USO) declined to $90.85 a barrel. Precious metals also declined, with Gold (NYSE:GLD) falling to $1575 an ounce while Silver (NYSE:SLV) rose 0.29% to settle at $28.43.

Here’s your Cheat Sheet to today’s top stock stories:

The fiasco of Facebook’s (NASDAQ:FB) IPO listing has left exchange operator Nasdaq OMX Group (NASDAQ:NDAQ) open to claims from market participants who lost money on failed or delayed trade executions, and these claims could well exceed $100 million. A system glitch delayed the execution of many clients’ trades, and the brunt of the losses were borne by four of the top market makers in the Facebook IPO – Citadel Securities, UBS AG(NYSE:UBS), Knight Capital (NYSE:KCG), and Citi (NYSE:C). These market makers could end up claiming over $100 million from Nasdaq.

Investing Insights: Why Did Pandora Pop 20% and Facebook PLUNGE 16.5% This Week?

Meanwhile, Morgan Stanley (NYSE:MS), the lead underwriter of Facebook’s (NASDAQ:FB) IPO, will compensate retail investors for their losses from having overpaid for the stock in Friday’s IPO, according to an Associated Press report. The firm is reportedly reviewing orders its retail clients placed for Facebook stock, and will make price adjustments for clients determined to have paid too much, according to a source familiar with the matter.The person didn’t give details on what would constitute overpaying.

Talbots Inc. (NYSE:TLB) shares tanked to $1.55 after it announced Sycamore Partners is not pursuing a takeover anymore. The company is still open to a deal with them at $3.05 a share but it also will pursue other options. Without the deal, stakes are higher for Talbots which has seen losses from sales declines. Its debt has also more than doubled, according to MarketWatch.

Big Lots Inc. (NYSE:BIG) shares jumped 4.5% in Friday afternoon trading. Earlier in the week, the company announced its intention to buy back $200 million additional stock. It also announced that its quarterly profit dropped 22% from slow sales.

BONUS: Here’s Why Dish Network is as DUMB as Congress >>

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Earlier estimates of the Wall Street losing a total of close to $100 million because of the technical problems now seem like an underestimation. Citadel Trading and Knight Capital Group (NYSE:KCG) have already been reported to have lost about $35 million each, while E-Trade Financial (NASDAQ:ETFC) faced a smaller loss of about $1 million.

Citigroup’s Automated Trading Desk unit and a similar division at UBS execute retail investors’ stock orders, and were among those hardest hit by the errors. Nasdaq’s system crashed on Friday under the barrage of high trading on Facebook’s market debut. Attempted transactions during a 20-minute period in the day on Friday went unconfirmed for hours.

Some firms have already asked the stock exchange’s holding company, Nasdaq OMX Group (NASDAQ:NDAQ), for compensation. The board of Nasdaq OMX has reportedly set aside only about $13 million for damage control as of now and will make a final decision on compensation after a review of requests by the Financial Industry Regulatory Authority.

Eric Noll, Nasdaq OMX’s head of transaction services, told brokers this week on a conference call that it was not certain whether losses would be fully covered.

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Executives at Wal-Mart (NYSE:WMT) say that the company’s pilot program small-sized stores called Walmart Express is looking hopeful as results pile in that point to profits. In addition it’s now forecast that hundreds more Express stores could be launched near term, as the units are designed to hook in spur-of-the-moment shoppers and are small enough to fit into tight spaces. Similar stores by Walgreen (NYSE:WAG), CVS Caremark (NYSE:CVS), and Rite Aid (NYSE:RAD) could be threatened by Express in the future.

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Don’t Miss: The Fresh Market First Quarter Earnings Sneak Peek.

Shares of Talbots (NYSE:TLB) lose almost half their value, following the news that its exclusivity agreement with Sycamore Partners has expired without results. The latter backed out of a deal to acquire Talbots at $3.05 a share, and now it seems that no one wants to make an offer. A total of 90 store closures, falling same-store comparables, and the failure to turn around its fortunes with advertising, has led Focus Investment Banking‘s Abe Garver to say that the company has talked to all potential purchasers, with no luck.

Director Armandi Cidina of Home Depot (NYSE:HD) has bought around $999,000 worth of its shares, at an average price of $48.37. The remaining shares fell a tiny bit on the news.

Time Warner (NYSE:TWX) is looking at the purchase of the popular sports website Bleacher, says a Wall Street Journalreport. Other suitors might be hovering nearby, but talks between Time Warner and VC-backed Bleacher are said to be ongoing.

Don’t Miss: Dish Cuts Out Ads, and Broadcasters Aren’t Happy.

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Out of Ammunition

Apple rejected charges that it conspired with publishers to fix prices of e-books by calling the U.S. government’s antitrust lawsuit against it “fundamentally flawed.” Apple told a U.S. District Court in Manhattan that its entry into the industry had actually increased demand for e-books by forcing Amazon (NASDAQ:AMZN) and rivals such as Barnes & Noble (NYSE:BKS) to compete more aggressively and upgrade their technology. Apple also said in its filing that the government had not “accurately characterized” a comment attributed to late co-founder Steve Jobs, which had him offering publishers a means to boost prices and “create a real mainstream e-books market at $12.99 and $14.99.” Read More: Apple: We Didn’t Do Anything Wrong

Change Comes From the Top

A new report said Jobs had himself worked on creating a larger screen for the iPhone before his death in October, and that Apple was ready to introduce the change in its next-generation device after currently being in the process of testing out several screen sizes. The rumor mill added that the new iPhone could also have a smaller dock connector, basically a much narrower version of the current squared-off-on-the-corners connector. The first suggestion will undoubtedly give Apple’s smartphone added advantage over Samsung and HTC’s Google (NASDAQ:GOOG) Android devices, but the second change would mean that the new iPhone will not be able to use the cords of previous Apple mobile devices that have remained unchanged for years now. Read More: Apple Reinvents the iPhone

No Love Between Fierce Fighters

Two-day long settlement talks between the chiefs of Apple and Samsung this week over their patent dispute have reportedly not resulted in any agreement. The companies are said to be preparing to return to their court trial in July after Apple’s Tim Cook and Samsung’s Choi Gee-Sung couldn’t quite see eye-to-eye despite meeting for a total of 16 hours. The dispute had started in April last year when Apple sued Samsung for copying the “look and feel” of the iPhone for its Galaxy line of smartphones. Samsung countered with allegations of its own, and the fight has only escalated in the last few months. Read More: Apple and Samsung Are Headed to Court

Waiting For the Next Big Thing

How many guesses will it take before we know what Apple is actually working on developing right now? Jonathan Ive, Apple’s lead designer, added more spice to the wonderings by saying that the company’s current project was the work he would hope to be remembered for. “A lot does seem to come back to the fact that what we’re working on now feels like the most important and the best work we’ve done, and so it would be what we’re working on right now, which of course I can’t tell you about,” Ive said. Apple, of course, is said to be working on everything from a larger iPhone, a smaller iPad, a new Mac line of products, and a revolutionary high-definition television set. Read More: What is This Secret Project Apple Designers Are Working On?

The Rich Get Richer

According to brand equity database BrandZ, Apple has retained its number one position in the list of the most valuable brands of the year. Apple’s brand value of $182.95 billion grew 19 percent year-over-year. Other major tech companies further down the list include Amazon, public trading newbie Facebook (NASDAQ:FB), China’s Internet search engine Baidu (NASDAQ:BIDU), Hewlett-Packard (NYSE:HPQ), and Intel (NASDAQ:INTC). According to BrandZ, the new list reflects that consumers are becoming more selective than ever when choosing brands to use and trust. Read More: Is Apple the Most Valuable Brand in the World?

Pandora Media Inc. (NYSE:P), which provides a personalized radio that plays music across several platforms such as traditional desktop computers and Apple Inc. (NASDAQ:AAPL) iPhones, announced first-quarter earnings earlier this week. The company reported that its loss for the quarter widened to $20.2 million, compared to a loss of $6.8 million a year earlier. Even though Pandora reported a greater loss, an adjusted net loss of 9 cents per share beat the mean analyst estimate of a loss of 18 cents per share.

Investing Insights: What is Pinterest Stealing From Facebook?

Unlike Facebook (NASDAQ:FB), which has come under fire for its advertising reliability and momentum, Pandora’s revenue from ads for the first-quarter was a deafening sound for investors. Compared to the same quarter a year earlier, ad revenue surged 62 percent to $70.6 million. Furthermore, mobile and device revenue now represents around 55 percent of total advertising revenue. This is a loud contrast from Facebook’s presence in the mobile ad space. During the social-media giant’s initial public offering roadshow, executives warned that Facebook’s ad business was not keeping up with the dramatic shift to mobile devices.

Don’t Miss: Are YOU Still Overpaying for Facebook Shares?

Total revenue for Pandora jumped 58 percent year-over-year to almost $81 million, beating the company’s first-quarter guidance by nearly $6 million. “Pandora is off to an excellent start, exceeding our first-quarter outlook and raising our expectations for the full fiscal year,” stated Joe Kennedy, Chairman & CEO of Pandora. “This quarter Pandora averaged more than 50 million active users a month who generated more than 3.09 billion listening hours across Pandora’s (NYSE:P) multiple platforms – desktop, auto, consumer electronics, and mobile devices. Consumers continue to embrace Pandora’s unparalleled personalized radio experience at an extraordinary rate, propelling Pandora’s market leadership to an all-time record share of 5.95 percent of total U.S. radio listening.”

The strong start also paved the way for an improved guidance. For the full year fiscal 2013, Pandora expects total revenue to range from $420 million to $427 million, up from the previous guidance of $410 million to $420 million.

Investors applauded the financial results and higher guidance range as shares closed more than 12 percent higher on Thursday. JMP Securities reiterated its Market Outperform rating on shares and increased its price target from $14 to $16. Meanwhile, Barclay’s (NYSE:BCS) raised its target by one dollar to $9, but kept its Underweight rating. “Pandora is simply too big to ignore,” Stifel Nicolaus analyst Jordan Rohan wrote in a client note, according to Reuters. “We continue to believe that audio is a great advertising medium for mobile devices.”

Investor Insight: New Tech vs Old Tech: The Battle Continues

Don’t Miss: Are NBC and Microsoft Calling it Quits?

Dish Network Corp. (NASDAQ:DISH): Following threats from broadcasters and suits filed against it by CBS, FOX, and NBC, Dish Network filed a lawsuit of its own in defense of the new AutoHop commercial-skipping feature. DISH’s Senior Vice President of Programming Dave Shull stated “ ”The lawsuits filed by the networks essentially argue that ‘consumers must watch commercials.’ We find that proposition absurd and profoundly anti-consumer. Customers have been skipping commercials since the birth of the remote control, and the networks are arguing against that fact. Taken to the extreme, will the networks next ask consumers to stop changing channels? Collectively, the networks reap billions in retransmission fees — fees that are reflected in subscribers’ growing bills. For their money, consumers deserve to use content they pay for as they wish.”

SIRIUS XM Radio Inc. (NASDAQ:SIRI): Though more shareholders voted anti-reelection than in favor of reelection, SEC filing reports reveal that Leon Black has won back his seat on Sirius’ board. Apollo Global Management’s CEO reaped advantages since there were no other names on the ballot.

Don’t Miss: Yahoo: You’ll Forget Chrome and Safari When You See This.

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On the commodities front, Oil (NYSE:USO) declined to $90.85 a barrel. Precious metals also declined, with Gold (NYSE:GLD) falling to $1575 an ounce while Silver (NYSE:SLV) rose 0.29% to settle at $28.43.

Here’s your Cheat Sheet to today’s top stock stories:

The fiasco of Facebook’s (NASDAQ:FB) IPO listing has left exchange operator Nasdaq OMX Group (NASDAQ:NDAQ) open to claims from market participants who lost money on failed or delayed trade executions, and these claims could well exceed $100 million. A system glitch delayed the execution of many clients’ trades, and the brunt of the losses were borne by four of the top market makers in the Facebook IPO – Citadel Securities, UBS AG(NYSE:UBS), Knight Capital (NYSE:KCG), and Citi (NYSE:C). These market makers could end up claiming over $100 million from Nasdaq.

Investing Insights: Why Did Pandora Pop 20% and Facebook PLUNGE 16.5% This Week?

Meanwhile, Morgan Stanley (NYSE:MS), the lead underwriter of Facebook’s (NASDAQ:FB) IPO, will compensate retail investors for their losses from having overpaid for the stock in Friday’s IPO, according to an Associated Press report. The firm is reportedly reviewing orders its retail clients placed for Facebook stock, and will make price adjustments for clients determined to have paid too much, according to a source familiar with the matter.The person didn’t give details on what would constitute overpaying.

Talbots Inc. (NYSE:TLB) shares tanked to $1.55 after it announced Sycamore Partners is not pursuing a takeover anymore. The company is still open to a deal with them at $3.05 a share but it also will pursue other options. Without the deal, stakes are higher for Talbots which has seen losses from sales declines. Its debt has also more than doubled, according to MarketWatch.

Big Lots Inc. (NYSE:BIG) shares jumped 4.5% in Friday afternoon trading. Earlier in the week, the company announced its intention to buy back $200 million additional stock. It also announced that its quarterly profit dropped 22% from slow sales.

BONUS: Here’s Why Dish Network is as DUMB as Congress >>

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Google Inc. (NASDAQ:GOOG) has gotten more protests about websites that might be infringing on Microsoft’s (NASDAQ:MSFT) copyrights than it gets regarding material from entertainment corporations requesting stricter online piracy laws. Google data shows it has recorded more than twice the number of requests to get rid of links presumed to violate Microsoft’s copyrights than requests related to NBC Universal (NASDAQ:CMCSA) over the past 11 months, according to AP. Shares of Google traded down $13.54 (2.24%) lately at $590.12.

Don’t Miss: Will Google Launch This New Device in July?

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Ford Motor Company (NYSE:F): Fueled by Moody’s upgrade investment-grade, Ford has decided to convert a deal issued in 2011. Ford has begun a process to change the capital market’s pioneer ABS-to-high-grade convertible bond to corporate debt from securitized form reports Reuters.

Featured Reading: Is Ford Coming Home?

Chesapeake Energy Corporation (NYSE:CHK): Carl Icahn’s bet on Chesapeake has caused shares to trade higher; however, when Icahn previously held a large CHK stake he had a noticeably quick entrance and exit. Also, analyst Antoin Gara warns investors that Icahn rumors are no excuse to buy. CHK currently is trying to fill a large funding gap so asset sales are the company’s main focus.

Microsoft Corporation (NASDAQ:MSFT): Digitimes reports, Microsoft is considering more expensive licensing fees for OEM versions of Windows 8. According to Neowin.net, Dell’s first Windows 8 tablet has a 10.1″ display, a dual-core Intel Clover Trail CPU accompanied by integrated graphics, dual cameras, a solid state drive, and a 0.4″ thickness.It will be difficult for vendors and ODMs to lower production costs since Intel is hesitant to decrease quotes for processors used in ultrabooks. Intel’s goal is for ultrabooks to total 40% of consumer notebooks sold within the year. Intel also attempts to reduce the bill of materials for the second generation of ultrabooks. H-P (NYSE:HPQ), Nokia, and several other Asian OEMs are expected to release similar tablets, but some may use ARM-based  CPUs instead.

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Upgrades

Uroplasty (NASDAQ:UPI): JMP Securities upgraded its rating on this company from Mkt Perform to Mkt Outperform and changed its price target to $6.

Dorman Products (NASDAQ:DORM): BB&T Capital Mkts upgraded its rating on this company from Hold to Buy.

Gulfport Energy (NASDAQ:GPOR): RBC Capital Mkts upgraded its rating on this company from Sector Perform to Outperform and changed its price target from $29 to $27.

Downgrades

NetApp (NASDAQ:NTAP): Argus downgraded its rating on this company from Buy to Hold.

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Don’t Miss: What Will Facebook Do With This Acquisition?

Groupon, Inc. (NASDAQ:GRPN) has a credit card reader in tests that would be a competitor to eBay’s (NASDAQ:EBAY) PayPal and the services made available by Square, according to Bloomberg and their sources close to the products. This is aimed at businesses that use Groupon to market their products, and testing is currently being done by a number of San Francisco businesses. Shares of Groupon traded recently at $11.93, up $0.04, or 0.34%.

Don’t Miss: What is Google+ Hiding?

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Improving Margins

Lauren Torres – HSBC: You addressed this question this morning on your earlier call, but I was hoping you could just talk a bit more about your confidence in improving margins this year. As we look at results last year and knowing that input costs are higher year-over-year for fiscal ’13 and knowing that Europe is challenging and potentially could get more challenging, I was hopeful that you could talk about where are the benefits coming from? How do you manage these potentially as some of these developed markets get tougher?

Jamie Wilson – Chief Financial Officer: Yes, let me see if I can help with on that. I think the answer is, the developed markets are continuing to grow, we see them continuing to grow into the incoming year. So I think in terms of relative situation relative to Europe they are in much better position and I don’t think therefore we’d see them as necessary being challenged, but certainly there is scope to grow. I think within that we also said that we had or we believe we have pricing power in all of those regions. I mean, yes, we run an affordability strategy, but we also run a penalization strategy where we are seeking to treat people up into premium brands as well as ensure that we have got offerings that meet consumer demands or value points. So I think if I look at that background and we would believe that we will be able to increase margins in those areas as a combination of pricing opportunities on certain brands, mixed businesses, but also our ability to control other fixed costs within those areas. And I think what we were saying this morning was a Group as whole by taking all of our regions together we would expect to be flat or positive. I think best guess would be that we would be a small amount positive in margins for next year and that’s where we would be targeting and it would be a blend of the markets where we are growing margin more strongly with those where perhaps the margins are more static.

Lauren Torres – HSBC: Can you also address the issue of capacity too as far as spending levels, what should we expect this year versus last and if that’s going to be any constrain on margins knowing that you may need to spend more in some of these markets?

Jamie Wilson – Chief Financial Officer: Within the capital numbers that we put out in the presentation and I talked about it a short while ago, we said that, capital expenditure this year was up on last year, but we would expect the same amount of flow through into the incoming year. We have announced a number of brewery expansions, particularly in Africa which is where the capacity constrains have been most felt, although we have also some capacity expansion in Latin America and in Peru in particular. The issue with something like Africa is that you can become the victim of your success. We have been growing very rapidly there and obviously, it takes time to build capacity. So, if the rate of growth is quite high than sometimes you get stages where you are capacity constrained. Those expansions are currently underway. We are rebuilding Ndola Brewery in Zambia, we are building a new brewery in Uganda, we putting on some additional capacity in Tanzania, we are building a brewery in Nigeria and we have already completed one in Southern Sudan. So from that perspective these expansions are either just been complete or come on stream towards the latter half of the first half and in most cases in well advance of the summer peak season. So we will have some capacity constrain over the next few months and then we would see that easing thereafter. The issue that that causes and you’ve seen from the results today is that while we have excess constraint, we have a slight restraint on margin. It didn’t push Africa into negative margins, but for the year it was more flat because we’re having to move beer slightly further than we’ve liked and that incurs transport costs, and cross boundaries that occasionally can incur tariffs, but obviously once the capacity comes on, those elements fall away. However, you bring on capacity which is not fully utilized, so the early stages is bringing on capacity, you get slight inefficiency on your fixed costs and then as we start filling out that capacity with the growth that we have in Africa, then you’ll find that those fall away and then margins will start advancing again. So, I think it’s a short-term issue in Africa, but it’s not one that we should be concerned about. I mean the good news is as our brands are becoming very appealing to customers and we’re able to grow our volumes and hence actually generate more absolute revenue. Certainly, if you look at the last year, we grew that revenue very strongly without actually any drop in margins. In the incoming year we would expect to be able to continue to grow revenue and hopefully actually increase margins to a marginal extent towards the second half of the year.

Gary Leibowitz – SVP, IR: Meanwhile, as Jamie said, while Latin America is growing margins, MillerCoors is growing margins, Asia is growing, South Africa certainly would be, if anything more strongly, if it weren’t for the weakening of the rand which is a question mark on the impact. So, all that set against the negative movement on Europe at the moment.

U.S. Debt Market

Priya Ohri-Gupta – Barclays Capital: Jamie, I just want to follow-up on some commentary that you have in the earlier presentation this morning around the proportion of U.S. dollar-denominated debt decreasing over the couple of coming years, as you repay borrowing and further re-denominate them and to re-denominate maturities into other operating currencies. Is it fair to assume then that we won’t see you back in the U.S. debt market over the next two years, or is that something that you continue to evaluate?

Jamie Wilson – Chief Financial Officer: No, I think you can assume that we may well come back into U.S. debt market because we will cycle some of our existing debt and we may choose to refinance that in the U.S. debt market. I think what we’re signaling there is that we will continue to look at repaying the facility we took out to buy Foster’s, not the bonds but the remaining facilities which were termed out for three and five-year term. So, as we get to the back end of the two years, we will be repaying some of that term loan. We also have some small maturing U.S. dollar denominated debt in that period and there would also be some actually Australian dollar debt that comes in into that period which was actually acquired by way of Fosters, but what you will see is for example as we see either bonds maturing or larger amounts coming to fruition and we may well come back to U.S. market to actually participate in that bond market. What we’re flagging up is that the profile is skewed more towards U.S. dollars than it normally would be not because so much of the bonds, but because of the remaining amount of term loan.

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Selling & Leasing Aircraft

Anthony Sibilia – Credit Suisse: It’s actually Anthony Sibilia for Greg this morning. I was just wondering if you guys could talk a little bit about who the potential buyers are for the aircraft that you guys are selling and leasing back? I guess what demand looks like for additional aircraft for them to purchase?

William E. Chiles – President and CEO: Yeah. I’m going to let Jonathan answer that. You’re referring to our leasing.

Jonathan E. Baliff – SVP and CFO: Yeah. Just to clarify the question and it’s a good one. Are you referring to who we do…

Anthony Sibilia – Credit Suisse: Yeah. Those are the ones that you guys are selling and then leasing back?

Jonathan E. Baliff – SVP and CFO: Right. Well, I would break them into three categories and as I’ve said before, there are numerous new participants in the market. But the first participant is what I would call you traditional bank or corporate finance staff that are trying to manage in many ways their tax position. So, many investment banks, but also commercial banks and there are also a number of other participants out there, very large corporate are willing to purchase these aircrafts and then lease them back to us as part of in their way a way to manage their tax position. The second participant are many of the banks, and what I would say who have leasing arms and these are either banks or non-financial institutions that are looking to lease and have been long time participants in the fixed wing aircraft market and many of them are also rotary wing helicopter lessors. The third element is really some of the newer participants in the market and a number of these participants are really interested in the residual value of the helicopter space and being able to manage that for what is in essence a separate investor class. Many of these newer participants are sponsored by large funds, but also pension funds and they get a lot of their money in order to manage residual value long-term, not so different than what Bristow does. Remember we will still own more of our aircraft than we lease and we like that exposure to the residual value as we manage the cash flow of our ongoing business. That being said, if we can do a cheaper – somebody else taking some of that residual value and providing a lot of that cash flow upfront to our investors and provide us ability to grow our business, we will take advantage of that. That market for that third participant has become very attractive to us.

Anthony Sibilia – Credit Suisse: Just one other question following up on that. What kind of drives your decision in selecting kind of which aircraft to sell and then lease back? I know in the press release, you talked about that are few that were sold this quarter were under construction, could you kind of just give a little bit more color that?

Jonathan E. Baliff – SVP and CFO: Sure. What we are trying to do under our prudent balance sheet philosophy is really manage this lease portfolio a little bit like how you would prudently manage a debt portfolio. In that, we want to have diversification of lessors, we want to have diversification of terms, especially how long the leases go out, we want to have some diversification of allowing us to recapture some of the residual value at some future date. So, all of these are really about diversifying the portfolio across our geographies. You see from the material that we’re providing to you guys on the leases that do have a lot of leases right now in North America because that market was particularly strong, and we had aircraft, especially our newer aircraft to particularly favorable from a low-cost to capital standpoint, so you’re going to see its due to lot of the newer aircraft as a way to manage our capital efficiency and they are also the most attractive assets in the eyes of many these lessors.

Capital Spending

Kirk Ludtke – CRT Capital Group LLC: I was wondering if you quantify to somewhere – and I have missed it, I apologize, but I was wondering if you could put the order book and the options into longer term view of where your capital speeding is going.

Brian J. Allman – VP and Chief Accounting Officer: We do provide a sense of really the capital that goes in under, and especially now that you have a 10-K with even more fulsome disclosure, you’ll see that commitments table outlines both the options and the commitments for our capital spend from 2013 through 2016 and thereafter. I can point you out which page once we actually disclose it, but this is a chart that we’ve shown very extensively. We’re one of the few companies that does give this level of detail on exactly how much capital is going out and so from our standpoint, if I can answer specific questions about that, but I’m trying to give you a standpoint of where the documents — what you’re asking is in also in the appendix of our presentation on Page 31. We do give a sense of the order book for which aircraft and generally where they are going, but that’s a little bit more shorter term because it doesn’t necessarily take into account all the options which are — we just don’t provide all the level of detail that we do for the specific order book. Does that help?

Kirk Ludtke – CRT Capital Group LLC: Yeah, it does. I appreciate and I guess I’ll double back to the 10-K, but it looks like pretty much there is and I think it’s pretty clear in your presentation that there is shift not only at Bristow, but in the industry toward larger, more sophisticated aircraft and I guess what are your plans for the smaller aircraft, I guess they are outlined on Slide 28. Is there a market for that or can you give us any color as to what your plans are and what those maybe worth?

William E. Chiles – President and CEO: Sure, I’m going to let Jeremy Akel answer that question.

Jeremy Akel – SVP, Operations: Yeah, Kirk the single-engine aircrafts are primarily in our Gulf of Mexico operation and there is continued demand for them although in the long-term as you just mentioned the shift in the industry is towards the larger aircraft and we’ve recognize that. So, from our standpoint, we are going to be looking closely at managing the supply demand relationship in the Gulf with respect to the single-engine aircraft and looking at the appropriate time to exit in a systematic way, though it’s fleet types.

William E. Chiles – President and CEO: Let me add a little more color to that too, Jeremy. The Gulf of Mexico is an interest place, because now we are seeing companies go back on the shelf and they are looking for liquids again. So, although we’ve always looked at the shallow water shelf, the shelf from the Gulf of Mexico is a gas market. It is starting to see a new life and the liquids looking for liquid. So, these small aircraft may have ever future beyond what we thought a few years ago. If you look at where we think the market is going, it pretty much matches up with the retirement of those aircraft anyway. We also operate 10 single-engine aircraft in Nigeria for Chevron, primarily for Chevron and they work these various short routes offshore and in the (indiscernible). So there are places around that we see the small aircraft continuing to operate. I will mention that we have not had an accident of the single-engine aircraft since 2007, knock on wood. So, we believe that with the right intervention and the right oversight and training, we can fly this single-engine aircraft just as safely as other aircraft is as the multi-engine aircraft. Does that help, Kirk?

Price Strategy

Bret Jordan – BB&T Capital Markets: A couple of quick questions and I guess one of them as you look at the first quarter today you talked about a minus seven comp in the seven weeks. Can you give us some color on the cadence of that was that a trend that’s improving from something worse than that or is it generally flat in April to May?

Robert G. Gross – Chairman and CEO: We’re fairly consistent. May started out worse than April, but they are all our long term investors the last four days have been a lot better.

Bret Jordan – BB&T Capital Markets: I guess if you look at price year-over-year you typically took price in April and September although it looked like you took a couple of price increases you said January and March this year. What’s the price strategy, did you take price again in April on service and what was the impact of price versus traffic on that comp?

John W. Van Heel – President & Secretary: Bret, this is John. We did take price on tires and service in March at about that 2% that we typically take it. So, we are obviously this year, price was more influential than traffic. Our traffic was down slightly through the year.

Bret Jordan – BB&T Capital Markets: I guess, if we look at the fourth quarter, the 2% tire comp, what was the unit comp I guess, because it seems like a lot of that positive was in prices opposed to the units. You look feeling for the unit transactions?

John W. Van Heel – President & Secretary: Yeah, units were down mid to high-single digits.

Bret Jordan – BB&T Capital Markets: I guess as you look at your guide on the comp this year, the zero to three, is that assuming a price increase coming in the September cycle as well?

John W. Van Heel – President & Secretary: Yes, absolutely.

Competition

Scott Stember – Sidoti & Company: Just talking to sales so far in the first seven weeks. Could you maybe talk about the individual higher ticket items such as brakes and tires, is there one that’s leading the path down or are they pretty much all down in that 7% range?

Robert G. Gross – Chairman and CEO: Yeah, it consistently sucks. The last four days, Scott are a lot better.

Scott Stember – Sidoti & Company: Could you talk about the competition, particularly on tires about what you’re seeing fourth quarter into the first quarter, have you seen any heightened competition and when you mentioned your comments about raising prices in December, was that for tires as well?

John W. Van Heel – President & Secretary: Yeah, in terms of competition the tire manufacturers have said that their units year-to-date which is calendar year-to-date are down mid-to-high single digits so we are basically in line with that. All the guys that we are looking to buy are experiencing very similar sales trend to what we are. So, we don’t see that we are losing share, we just think it is kind of (shitty) everywhere. In terms of September and the price increases, we look for whatever opportunities we have to increase the tire prices because the cost continues to rise so we would absolutely look at what we can do in September on service and tires.

Scott Stember – Sidoti & Company: So, (one must) look at the lower end of your guidance would that probably assume that you would have some trouble putting through prices on tires?

Robert G. Gross – Chairman and CEO: I am sorry, say that again, Scott?

Scott Stember – Sidoti & Company: If we were looking at the lower end of your guidance would that assume that you would have trouble putting through prices?

Robert G. Gross – Chairman and CEO: No. Don’t look at the lower end you are going to make me cry. No, I would think that either, late this year our tire sales were certainly the unit decline was compensated by collecting more for every tire and I would expect that to continue going forward. I think there is more risk in the near term on traffic and people continuing to defer.

Scott Stember – Sidoti & Company: Just last question with oil prices going up and being a headwind for you guys, could you maybe just frame out the number of oil changes that you do per year, so we can just get an idea of what’s traffic been?

Robert G. Gross – Chairman and CEO: About 2.5 million and approaching 4.5 million overall vehicles a year, 2.5 million oil changes.

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Explaining Revenues

Eric Bosshard – Cleveland Research: Two questions. First of all, I know that it’s hard to totally know, but curious on your sense of your market share performance, your revenue is up 10% or U.S. revenue is up materially more than that. Do you have a sense of how you’re performing relative to the market here in the first half of the year?

Michael J. Hoffman – Chairman and CEO: It’s a good question and I think there are certain areas where we have pretty solid information or data. There is other areas where it’s a little more anecdotally, but as I would look across the portfolio, I would say we feel golf market share both equipment and irrigation is trending – in the right direction trending favorable. I would say the same thing is true for walk power mowers and riding z products where we have strong shares and the same thing, largely true in the landscape arena. The residential, commercial, irrigation business we don’t have a precise data there, but I would tell you with all the innovation that we’ve brought to the market and certainly that industry has gone through a significant challenge with the economic downturn and slow housing issue, but that continues to recover and again we think we are gaining share there to against, we’re really the number three competitor working our way back to two and one. So, I guess I would say overall we feel good about our market share that we don’t know any category that’s under severe pressure. Regionally, we’re always looking at that around the world, but even there I think overall we feel good about our market share.

Eric Bosshard – Cleveland Research: Then secondly, the sales in the first half look like they up around 10% and the full year revenue guidance is 7%, 8%, suggest the back half is up more like 6% I guess, up 10% in the first half, up 6% in the second half, if that math is right. What will you see within that, you’ve got some visibility on what your customers are doing and distributors are doing, and obviously, you got some visibility in that a lot of the month of May as well, can you just explain a little bit your thinking within how the revenues came to the balance of the year?

Michael J. Hoffman – Chairman and CEO: Sure. I think it’s fair to say, and Renee mentioned earlier, retail has been strong in that pulled inventory into the channel. We think that will continue to be strong and we’ll see if to the degree it is that – to what degree the season will be extended, maybe remains an opportunity there. Probably the most significant headwind against that back half, if you will, is the snow products. So we expect a significant reduction in snow shipments in primarily the fourth quarter, but to some degree the third quarter, because we can’t just come off in ’11 and ’12 snow season that was very, very soft. The snow business is kind of the two stories, if you will, the preseason which is very forecastable based on the previous season and then the wildcard (which is) in-season piece that takes place based on the snowfall you get in the months of November, December, January and February. So we know the preseason will be soft. We are counting on a better in-season this year and we’ll comp favorably against that, but that’s more in F ’13 question.

Eric Bosshard – Cleveland Research: And then one last question if I could. On international, two things, one, can you remind us of the split of how that international shapes out by region of by country. And then also talk about what you are seeing there and also highlighting what the currency impact was and how that changed versus the first quarter?

Michael J. Hoffman – Chairman and CEO: I’ll have Rene comment to the currency piece in just a minute. Europe is less than 15%. It is between 10 and 15% of our business, closer to 15%, obviously that’s the market that’s under the most pressure. It’s also had some challenge with early spring weather over there. So that would be of the international markets under the most pressure; Asia, a smaller part of the portfolio. What’s been going on in China slowed year-over-year, although we see signals of that starting to move back in the right direction. Last year this time, Japan came to a halt because of the tsunami and that recovery is well underway. So, that’s helping largely to offset the China part of the business. To other pieces of international, Canada and Australia; I guess, Australia will be the second largest piece of our international portfolio. Both are doing well. Of internationally, primarily Europe is where the pressure is, we think where we have obviously the concern about just to what degree will the environment change there, so many of those countries are now formally into a recession to a degree. Will that recession play out, hope it is mild, we are not looking at a (step) change there, but only time will tell.

Renee J. Peterson – VP, Finance and CFO: From a currency standpoint, we have a hedging strategy, so we do not tend to see a lot of volatility within a particularly quarter related to currency. The impact on Q2 was modest. It was less than a point or half a point of favorable impact to sales for the quarter, so a minimal impact.

Residential Margins

Michael Worley: I was just wondering if you could explain the margins in the resi business and why they were down in this quarter. Was that a mix issue?

Renee J. Peterson – VP, Finance and CFO: When we look at residential, really from a year-to-date standpoint, if we’ve had the same mix year-over-year, our margins would be consistent year-over-year, so it really is a mix that’s driving residential margin. If we look forward, we do expect to see margin improvement for the year. Our strong sale has helped us from an absorption standpoint, so our operations are our operating at the capacity level. We do feel we’ve realized price that offset for a material cost and we continue to focus on productivity and cost reduction efforts, so we do expect to see continued margin improvement.

Michael Worley: So did you say that price did offset material cost in the quarter?

Renee J. Peterson – VP, Finance and CFO: Overall, yes.

Michael Worley: On a micro irrigation, is that – new plant in Romania is that running at full capacity yet?

Michael J. Hoffman – Chairman and CEO: No, not yet. When you start-up a plant, you go through a bit of a learning curve, but it is running and it is making product available for the Eastern European customers and it really has helped us with more capacity, so that overall as we look at the micro irrigation business, we’re not having to shift stuff as far previous years we had to shift stuff across the oceans in some case and there is cost associated with that, so it’s on strategy.

Michael Worley: Is there any impact to either that plant or the micro irrigation because of the issues in Europe or as Eastern Europe not really seeing that maybe the impact?

Michael J. Hoffman – Chairman and CEO: Yeah, certainly there is – as you know, we have a plant also in Italy. I think while the micro irrigation business is not immune the pressure to be more precise with water management and to grow more food helps insulate that a bit if you will, and so those businesses are doing relatively better.

Michael Worley: Then the last question I have is just on the M&A pipeline. You guys have made – you’ve made a couple of smaller acquisitions in the rental space and I was just wondering if there is any larger assets in that space or if that’s still kind of a focus of the M&A going forward?

Michael J. Hoffman – Chairman and CEO: Our M&A strategy continues to be as we’ve stated before, so the focus is more Professional than Residential, in some ways the focus is more international than domestic. With that said, we’ll look at all opportunities there and all potential candidates if you will, but as you know with M&A you don’t want to force it because that results in premiums that are tough to make up. So, we continue to work with the process, there is no doubt there are fewer, larger deals and more mid-sized deals and a lot of a little deals and most of what we’ve done, I hope you understood are smaller ones, but they are good fit with the strategy, and I think it will give us some springboard opportunity looking forward in particular to your point to the rental business, it’s actually with the Stone and Astec Construction, but add to those a year before the Praxis and the Lawn Solutions, we really have strengthened the rental portfolio in such a way that we are becoming a much more significant player there, but we’d look across all of our businesses and adjacent. The Astec acquisition obviously has been adjacent to market, but a good thing that we think with what we have in terms of things we do well and so that what took us into that arena.

Michael Worley: Is there a critical mass in that rental business that you can start expanding organically as well by a new product introduction and such?

Michael J. Hoffman – Chairman and CEO: There are certainly is. In fact, you would argue that the recent history, our expansion in round market has come largely from organic until the last year where we’ve added some of these acquisitions. So, the organic development of a walk-behind trencher which has become a market leading trencher, the organic development of a tracked stump cutter which is become a leader in that space too have really helped again both – have helped solidify our position there and then now you couple the acquisitions on to that and our position is getting robust.

Operational Improvments

Steve Mogford – CEO: I’ll pick up the license change and then let Russ answer the question for him. I think on license changes, certainly there is a strong degree of consensus amongst the industry, the income that’s in the sector on the fact that what we need to do is essentially look at the core license amendments that are required to implement the changes to PR14. So I think there is a general degree of consensus on what the material issues are. In truth, I don’t think we are mile away from Ofwat in a sense of what needs to be done now in the context of facilitating competition, for example. I think there is more of a discussion to be had around longer term change and the pace of that change and what it delivers, the rationale for it, because many of the longer term ideas are simply in concept at the moment and we haven’t been able to work them through. So I think my sense is that there is developing understanding now of what needs to be done. I think there is also a sense that’s developed over recent months of everybody just wanted to get this sorted and move on. I think that the license – the principles paper that Ofwat put out 10 days ago was extremely useful in that context and sort of confirming some of the things that we’d understood earlier, but the earlier license amendment perhaps haven’t been firmed or reflected.

Russ Houlden – CFO: On index linked debt, we are obviously pleased that we have got a high proportion of index linked debt. About 50% of our debt is index linked and we think that is an appropriate hedge of our RCV. We look at it on an economic basis. So we think that is appropriate hedging. As to whether we should somehow hedge the profit and loss account, we are not inclined to do that at this stage, but obviously we’ll keep that under review if there were a demand from Shell just to do it, but we think the economic hedge that we have in place is the appropriate one.

James Brand – Deutsche Bank: James Brand from Deutsche Bank, just want to ask question on operational improvements. Clearly, you’ve made well looks like a lot of progress over the last year or so, operationally and particularly in terms with your SIM scores, you did mentioned that you aimed over the last year and the next years to be above average on the SIM measurements. But, do you have any other kind of mid-to-long term ambitions operationally and how much more do you think has left to go for?

Steve Mogford – CEO: I think two things, on customer, we know there is still a lot to do on customer, because effectively the way that SIM would be measured is over three-year period. So we know that we’ve made a lot of improvement, but we’re still below median this year. So we’ve got to get above median in subsequent years to come out with an above average position. So, clear target there to get into reward territory and it’s tough, but achievable. So that’s where we’re going for. That’s really about more of the same both in the context of the way we deal with customer bills and first time resolution, but it’s also that how we operate out in the networks, so things like disruptions to supply, discoloration of water and all those types of issues which tend to cause difficulty with customers. So, clear focus there and I think a lot to go out and very clear plans of what we want to do. Operationally, overall in terms of the efficiency improvement, I’ve said we’ve got GBP200 million, of which is GBP50 million is stretch on the Ofwat target. There is an awful lot going on that’s yet to deliver benefit, which we’ll see coming through in the later years of the AMP to meet our overall goals. So, for example, just recently we’ve implemented some technology out in the field which allows us to do much better pressure sensing management and understand what’s causing leaks and be able to get to those with a very high degree of resolution as to where they are, rather than sending guys out in the street at night times sort of (listening) to pavements. So those are the sorts of things that we’re doing in terms of use of technology all the way that we’re running our assets that give us more to go at. So, I think the benefit that we’ve had – when Russell and I sat here last year, we were looking at this saying we think we can do this. I think as we’ve gone through the last year and got our arms around the business, we have a much higher level of confidence that we can see the levers to pull and I think that’s the important point for us.

Unidentified Analyst – Credit Suisse: (indiscernible), Credit Suisse. Just a couple of questions. Firstly on the non-household retail. I think the consumption threshold for your competition was reduced from 50 megalitres per year to 5 megalitres per year in December granted it’s a small market, a small part of your overall profits. But I was just wondering if you’re seeing anything to date in terms of switching your churn or if you expect to see more of the threshold that is eliminated altogether. Secondly, just to come back quickly to license modifications, I understand that Ofwat is now meeting individually with each of the companies to, I guess, negotiate. I was wondering if you’d met with them yet. If so, if you expect this issue to be resolved or if you expect it to go to the CC, and if so, what kind of an outcome you’d expect from there?

Steve Mogford – CEO: Okay. What I’ll do is with second question first and let Russ pick on the revenue issue and churn. We’ll do with it, so I’ll share it out. I think as far as our license modification, yes we have met with Ofwat. John and I met a few days ago. I think a general sense was very positive engagement with Ofwat, very constructive. I think it’s fair to say nobody wants to go to CC, the Competition Commission, that would be a sad outcome for all parties. I think as I said earlier, I think there is a developing degree of consensus about what needs to be done in order to facilitate things like increasing competition for PR14, and as I say, the principles paper that Ofwat put out, I think clarified some of the ambiguity that we’ve seen with the proposed license amendments, because in price consultation we heard things like detection of RCV, retention of RPI link, retention of five years, those sorts of things. When we saw license amendments, we didn’t see that reflected and I think what Ofwat has done recently is extremely useful in reconfirming the core intent. So I think what I can see here is a general convergence, The Devil’s in the Details, so things like the retail pricing issues and average cost to serve; and what’s also very positive, I think, from Ofwat and the sector is a declaration to say let’s get into that detail, let’s work it through and let’s understand how it would work, because there is a recognition that for those on what might be seeing is the wrong side of average cost to serve they have a problem, but there is also a problem for those on the right side, because potentially you have the opportunity to put out customer prices for no good reason. So, I think we’ve got to work through this in some detail now and I think The Devil’s in the Details.

Russ Houlden – CFO: On the competition point, as you rightly say the threshold was reduced from 50 megalitres to 5 megalitres in December. At the moment it applies to water only, it doesn’t apply to (storage), that’s just the water service that is open to competition. When we had the 50 megalitre open to competition, there were no switches about 50 megalitres and since we’ve moved to 5 megalitres we’ve so far had no switches above 5 megalitres either.

Steve Mogford – CEO: But I think the point you make is correct. The impact of switching for perhaps was relatively small from a – even if everybody switched you’re talking about a handful of a single digit millions impact on revenue, it’s actually very small.

Cost & Debt

Dominic Nash – Liberum Capital: Hi, it’s Dominic Nash, Liberum Capital. Two questions, please. Firstly, on your cost of debt, it seems you’re raising debt. So 1% really seems quite attractive at the moment and quite big spread between cost of debt and cost of equity. Is there any headroom available to you to increase the cost of – your level of gearing about 59% to RCV and replace expensive equity? Secondly, on the average cost to serve pulling up from that, obviously I think you on the wrong side of the average, is I don’t understand that you will be – it would be unacceptable to you on the introduction of competition?

Steve Mogford – CEO: I’ll pick up cost to serve and to the debt issue Russ. On cost to serve, I think the issue we’ve got is that the average cost to serve calculation as presented today is relatively simplistic. We’ve identified in the dialog with Ofwat a number of areas, where, for example, using an average cost where you’ve got somebody that might have a wastewater provider separate from the water provider, and are we talking about that customer paying two average cost to serve, (we don’t say) we’d only have one, does that make sense. We’ve always, as we’ve gone through pricing, been able to look at socioeconomic conditions in regions, and I think all the factors, it’s been relatively simple in the context of company reporting when you’re dealing with a single price all costs sits within that single price. I think now as we moved to break that single price down into possibly two price caps, you’ve got to be pretty clear that you’re working to the same rules when you allocate costs and you’re actually calculating pricing. So I think those are the types of issue which cost principle doesn’t cover. To be fair, we have had a positive engagement with Ofwat on this and the conversations that John and I had last week indicate a willingness to engage on that and try to get this right. As I say, it is difficult for us and what we would see as unfair and unreasonable, for others it would be unreasonable, unfair on customers if we simply use that methodology. So we got to solve this down.

Russ Houlden – CFO: On the question, Ted, I mean you are right to point out that we’ve got a very good rate there with 0.9% rate on the latest EIB loan and partly EIB is generally cheap because they’re financing environmentally-friendly projects, (it’s better) but partly the timing was particularly good and I think that since then their loans to other companies have not been as cheap as that. Your question about whether we should increase gearing rather assumes a limitless part of money at the EIB which I think doesn’t exist and I think 400 is a very good achievement so early in the period. If we could get a little bit more that will be great, but we shouldn’t assume a bottom (indiscernible) funding that’s not what exists. We do think that the 55 to 65 range on gearing is the right range and it supports the A3 credit rating and it is the Ofwat target and it is our target. So we wouldn’t intend to go out and borrow money, which would not be as cheap as the EIB, let’s be honest. If you would go out and borrow a lot of money it wouldn’t be that cheap and we don’t intend to do it.

Lakis Athanasiou – Independent Analyst: Lakis Athanasiou, independent analyst. I have three questions. First, one thing you mentioned the tariff adjustment to the next review. Has there been any indication yet of what Ofwat minded to do, whether there will be a revenue adjustment or a rev adjustment? Is it likely to end up, if it’s a positive, it will be up RAV adjustment and if it’s a negative, it will be a revenue adjustment. Second on finance…

Steve Mogford – CEO: Can you just explain that in context?

Lakis Athanasiou – Independent Analyst: You mentioned your revenue reductions versus the DFP, you’ll get compensate for the next two years. Just wondering how that mechanism will work, whether Ofwat has given indication, whether it’s revenue or RAV, because I don’t think it was agreed at the last (year). Second on financeability, has there been any indication on whether Ofwat will improve the competitive segment in the financeability test. I think it is going to be important in the next review given that probably financeability will be how they’ll back into the (indiscernible) return given the industry. Third on debt rating, is it still the case for the S&P, FFO to debt measure, is it constraining metric rather than the Moody’s debt to RAV or adjusted interest cover?

Steve Mogford – CEO: Tariff adjustment next review, how does the (indiscernible) work? I think you’re right. I mean you were all over the detail, Lakis and I think it isn’t 100% clear, but our assumption is they would probably come through revenue, but that’s an assumption rather than we could prove it to you in black and white. One financeability, have Ofwat made any statements about whether the competitive segment would be in the test? I don’t think they are 100% clear on that, but I think we should push them to do that. Then on debt rating, you’re right, there is a significant difference in methodology as between Moody’s and S&P. S&P do still look at FFO and that means that our rating with them is one notch lower than is with Moody’s. We comfortably engage with S&P to talk to them about the methodology, but so far it remains focused on FFO.

Lakis Athanasiou – Independent Analyst: (Question Inaudible)

Russ Houlden – CFO: It doesn’t really constrain us, because I think most people see the Moody’s rating as the more balanced approach to the sector. So it doesn’t really have a big effect on our financing capability.

Ian Gordon – Exane BNP Paribas: (Ian Gordon) from Exane BNP Paribas. Can I just ask about the infrastructure renewal expenditure, which was up year-on-year as expected? What’s driving that and how do you see that coming out for next year and the rest of the AMP? Then on the EIB debt, I think you’ve now got about – a total of about GBP1 billion of that, which is a relatively short duration compared with the rest in your balance sheet. Not trying to be a so glass half empty person, but do you worry about how you’re going to be refinancing that over the next five to sort of 10-year period?

Russ Houlden – CFO: I think you’ll find that along with the rest of capital program, it normally is higher (indiscernible) and so as we renew into the network, so I think that’s not an unusual feature. On the EIB, you said shorter duration, but I think the average length of the debt that we’ve just taken on is about 11 years, that’s not likely short. Do I worry about it? Not particularly, and I think the next thing in my sight really is the 2015 maturities where we’ve got about GBP450 million maturity coming up in 2015. That will be the next financing task. Can I address that task now? No, not really because of the cost to (carry) if I was into it right now, but we keep looking at that every six months and we will probably do something before we get to 2015.

Earnings Report: The Fresh Market First Quarter Earnings Sneak Peek.

HJ Heinz Co. (NYSE:HNZ) announced that its Board of Directors has approved a 7.3% increase in the annualized common stock dividend, marking the Company’s ninth consecutive year of dividend growth. The quarterly common stock dividend will increase from 48c to 51.5c per share quarterly for all shareholders of record as of June 24, 2012, payable July 10, 2012. The dividend declared by the Board results in a new annualized common stock dividend of $2.06, an increase of 14c from last year.

FedFirst Financial Corp. (NASDAQ:FFCO) announced that its board has approved an increase in the quarterly cash dividend to 4c per outstanding share of common stock, up from 3c per share. The dividend will be paid on or about June 29 to stockholders of record as of the close of business on June 15.

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No Plans to Divest

Harsh Kumar – Stephens: Congratulations on closing the deal. Mohan it seems like Gennum is on a run rate of roughly $35 million, $36 million a quarter. Do you anticipate keeping all of that revenue or are there parts and pieces you will shut down, can you just comment on that? And I’ve got a couple of follow-ups.

Mohan Maheswaran – President and CEO: At this point, Harsh, we have no – there’s no thinking about shutting down any of the revenue, any of the product lines. The video business is – looks like it’s very healthy business, lots of opportunities, both in broadcast side on the surveillance side and also some emerging spaces within the broader video market. Then I think on the datacom side, obviously they are a very good fit with what we do both on the physical media devices and also on the CDR devices. So, I think that’s very healthy. The IP division is a very, very talented group of people that now was under the name of Snowbush. Historically, we also have looked at that – the people and the capability there and we believe that that’s going to be a very good asset for the Company going forward also. So, at this point in time there’s no ideas of divesting anything.

Harsh Kumar – Stephens: Then, Mohan, you mentioned that communication is starting to come back. You specifically mentioned that opticals looking a little bit healthier now. I’m wondering if you would give us some color between 40-gig orders that you’re seeing and the 100-gig orders that you’re seeing. In other words, is the one doing better than the other or both coming back?

Mohan Maheswaran – President and CEO: They are both coming back. 100-gig is very small today, so when we see a small pick-up in that, it’s nice to see that growing, but that will continue to grow. Obviously, 40-gig is a little bit larger and little bit more mature than 100-gig. So that’s going to be a little bit more up and down. But in general, I would say, we expect the pool count for both 40-gig and 100-gig to increase on an annual basis and for sure, we’re seeing demand pick up in both 40-gig and 100-gig on a sequential basis here.

Harsh Kumar – Stephens: My last question and I’ll jump back in queue. Are there any intentions of taking any steps to increase the gross margin of Gennum products. I know they are very healthy already, but maybe there are steps. Then secondly, when would you start taking steps on the SG&A side or maybe you could provide us an update of that?

Emeka Chukwu – SVP and CFO: Well, on the SG&A side, we already have started to take some steps. The Gennum management team has largely been reduced there. We have made some significant changes there. We have started to integrate a large portion of the sales infrastructure and are aligning some of the channel elements there. So, I think, that’s progressing quite well. I think on the gross margin side, yeah, I mean, as a company we do that. We don’t look at a product line and say, hey, you have great gross margins and therefore we don’t need to do anything with it. We continue to look at cost. We continue to look at new products in the areas to get higher ASPs and things like that. So, yes, we will continue. I think there is some opportunity obviously clearly with the supply chain integration, there is opportunities to bring down the cost. Some of the philosophies we have in terms of how we attack cost I think we can apply to the Gennum business. So, yeah, we will continue to look at that.

Upcoming Trends

Gabriel Rodriguez – Goldman Sachs: This is (Gabriel Rodriguez) on behalf of Jim. Just a follow-up on the comp space, could you provide some color on trends by geography and any visibility you might have into trends broadly in the second half of the year?

Mohan Maheswaran – President and CEO: So, by geography Asia is starting to pick up and I think Europe also. So, those are the two that where we are seeing the booking strength. Second half of the year, difficult to call but we’re not seeing – our view is that the comm space is starting to pick up quite nicely, specifically in some of the higher bandwidth areas. Clearly, there is a need for more bandwidth, and then I think that’s going to continue to drive some of the infrastructure deployments. So, we have seen a pickup, both on the long haul side and some of the short-reach side as well. So, it’s difficult to call second half. I would say that we’re going into our strongest period here in general Q2 and Q3 for Semtech, are quite strong periods and so my expectation is that (indiscernible) comm both Q2 and Q3 will be quite strong.

Gabriel Rodriguez – Goldman Sachs: Then just as a follow-up, if I may, on the port protection side, some of the data points we’re seeing from the smartphone space have been mixed. What are you hearing from your smartphone customers and how do you expect your smartphone revenue to trend this quarter relative to normal seasonality?

Mohan Maheswaran – President and CEO: I think it is a bit mixed, it’s not as great as one would have liked, as you go into the strongest period of the year, but it is significantly stronger than what we’ve had in the last couple of quarters. So, my expectation is, again, we’ll see, as I mentioned, an uptick in Q2 and then some more uptick in Q3, but perhaps not as much as we would like to see it, and that tells you something about the consumer space in general. I think there’s still a lack of confidence in the macro environment and things like that, but I think it’s going to be okay.