Excluding one of our capital markets businesses, a broker/dealer, and adjusting for currency, revenue was flat year over year. Operating income was $104 million in the quarter, up 34% year over year, driven by a 7% decline in total costs and expenses. Adjusted EBITDA was $296 million and adjusted operating income was $215 million in the quarter, up 5% and 6% respectively. 

Russ Fradin, president and chief executive officer, commented, "While the environment remains challenging, I'm pleased with our strong performance in software license fees in the quarter. This performance coupled with our continued focus on operating cost management enabled us to improve both our profit and cash flow generation. I'm proud of how our team is managing during these challenging times, and I'm confident that we're focused on the right initiatives and investments to drive the long term growth of the business."

Financial Systems revenue was $682 million in the second quarter, down 4% year over year (down 2% adjusting for currency). Excluding the broker/dealer business and adjusting for currency, revenue increased 2%. Software license fees were $73 million in the quarter, an increase of $5 million compared to a strong performance in the second quarter of 2011.

Notable deals in the quarter included the following:
• A leading European retail bank selected SunGard's Front Arena and Adaptiv to support trading and risk management across multiple asset classes and business lines.
• The securities and investment banking division of one of the largest diversified financial services companies in the U.S. selected SunGard's Stream GMI and a hosted installation of Stream Clearvision for post trade derivatives processing, plus professional services.
• One of Canada's largest banks selected SunGard's new Apex Collateral solution for enterprise cross-asset collateral management and optimization.
• A leading global asset manager selected SunGard's APT for its middle- and front-office risk and investment teams, globally, to provide a robust and consistent view of risk across its business.

Availability Services revenue was $351 million in the second quarter, down 4% year over year (down 2% adjusting for currency). The decline in revenue was primarily driven by North American recovery services, partially offset by North American managed services.

Notable deals in the quarter included the following:
• One of the largest financial services firms in the U.S. selected SunGard for recovery services.
• One of the largest and most populated states in the U.S. selected SunGard to provide advanced recovery services.
• A global leader in supply chain management selected SunGard to provide a comprehensive suite of managed recovery solutions.

All Other revenue, comprised of our Public Sector and K-12 businesses, was $51 million in the second quarter compared to $53 million in the second quarter of 2011. Software license fees were $2 million in the quarter, unchanged compared to the prior year's second quarter.

Financial Position

For the first six months of 2012, the continuing operations of the Company generated $220 million in cash flow from operations, an increase of $44 million over the prior year, invested $115 million in capital expenditures and spent $9 million on one acquisition net of acquired cash. During the quarter, the Company also used available cash to redeem its 10.625% senior notes due 2015 for $527 million plus accrued interest and paid $240 million in taxes related to the sale of its Higher Education business. The Company expects to pay the remaining approximately $210 million in taxes related to the sale of its Higher Education business over the last two quarters of 2012.

At June 30, 2012, total debt outstanding was $6.1 billion and cash was $699 million. In addition, the Company's leverage ratio as defined in its senior secured credit agreement was 4.26x, down from 4.96x at December 31, 2011, principally reflecting debt reduction of $1.7 billion during the first half of 2012.