Gordon Clemons - Chairman and Chief Executive Officer.

Analysts:.

Welcome to the CorVel Corporation earnings release conference call. During the course of this conference call, CorVel Corporation may make projections or other forward-looking statements regarding future events or the future financial performances of the company.

CorVel wishes to caution you that these statements are only predictions, and that actual events or results may differ materially. CorVel refers you to the documents the company files from time to time with the Securities and Exchange Commission, specifically the company's last Form 10-K and 10-Q filed for the most recent fiscal year and quarter.

These documents contain and identify important factors that could cause the actual results to differ materially from those contained in our projections or forward-looking statements. (Operators Instructions) I would now like to turn the conference over to your host Mr. Gordon Clemons. Sir, please go ahead..

the claims intake process and how it integrates with claims administration; new claims systems features; extending our use of web portals; Network Solutions investments; and added foundation strength for our systems and data centers.

Back to the claims intake process, which continues to evolve, CorVel is uniquely positioned to integrate the various pieces of claims intake that is, ask-a-nurse type hotlines, claims intake, triage and telephonic claims management, as we provide each through proprietary CorVel assets.

Leading these into the workflow of claims management is a complex, but promising area of development. New claims features included the integration of all services included in a workers' compensation through the accomplishment of this at a data management level in CorVel systems, the capability, which differentiates our services results.

Investments in the speed and stability of these systems, was an area of emphasis in the quarter. More friendly systems interfaces for our customers will improve the use of our product. The development and implementation of mobile application features for patients is a current project with promise.

Our ability to bring unique features to such an application is enhanced by the integration efforts we have made in all related claims management components. As I discussed earlier, Network Solution is undergoing a major rewrite. This began a couple of years ago and will stretch forward for another couple of years.

Investments in the foundations to our systems continue throughout the current year. The new data center continues to come online, expansions continue to our use of .net software and web services. We're gradually including new programming languages and tools, as well as continuous improvements to the hardware we employ.

Now, I'd like to cover a couple of additional statistics. The quarter ending cash balance was $34 million. And our DSO, that is day sales outstanding and receivables, was 42 days compared to 39 a year ago. 123,400 shares were repurchased in the quarter for $5.7 million.

We have returned $344 million to shareholders in the last 17 years, repurchasing in that period of time 32,270,000 shares. Shares outstanding at the end of the quarter were 20,881,000. And diluted EPS shares were 21,210,000 for the quarter. Shares were reduced 2% this last year as we allowed our cash balances to increase.

I'd like to now turn the call back over to the operator to open the question-and-answer session. Thank you..

(Operator Instructions) It appears there are no questions at this time. I would like to turn the floor back over to Mr. Clemons for concluding comments..

Thank you. Thank you all for joining us. We'll look forward to talking to you again next quarter. Good bye..

Thank you. Ladies and gentlemen, this does conclude today's teleconference. We thank you for your participation. And you may disconnect your lines at this time..