----

----

|   | R | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|---|-----------------------------------------------------------------------------------------|

|   | o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|---|------------------------------------------------------------------------------------------|

| Indiana(State or other jurisdictionof incorporation or organization)                                   |   | 35-1933097(I.R.S. EmployerIdentification No.) |
|--------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|
|                                                                                                   |   |                                          |
| 7601 Interactive WayIndianapolis, IN 46278(Address of principal executive offices, including zip code) |
|                                                                                                   |   |                                          |
| (317) 872-3000(Registrant’s telephone number, including area code)                               |
|                                                                                                   |   |                                          |
| Not Applicable                                                                                         |
| (Former name, former address and former fiscal year, if changed since last report)                     |

----

| Yes     R | No       ̈ |
|------------------------------------|----------------------------------------------|

| Yes      ̈ | No       ̈ |
|-----------------------------------------|----------------------------------------------|

| Large accelerated filer |  ̈ |   | Accelerated filer | R |   | Non-accelerated filer(Do not check if a smaller reporting company) |  ̈ |   | Smaller reporting company |  ̈ |
|-------------------------|--------|--------|-------------------|---|--------|--------------------------------------------------------------------|--------|--------|---------------------------|--------|

----

----

----

| PART I. FINANCIAL INFORMATION |                                                                                                  | Page   |   |
|-------------------------------|-------------------------------------------------------------------------------------------------------|--------|--------|
| Item 1.                       | Financial Statements.                                                                                 |   |   |   |
|                          |                                                                                                  |   |   |   |
|                          | Condensed Consolidated Balance Sheets as of June 30, 2010 and December 31, 2009                       |   |   | 1 |   |
|                          |                                                                                                  |   |   |   |   |
|                          | Condensed Consolidated Statements of Income for the Three and Six Months Ended June 30, 2010 and 2009 |   |   | 2 |   |
|                          |                                                                                                  |   |   |   |   |
|                          | Condensed Consolidated Statement of Shareholders’ Equity for the Six Months Ended June 30, 2010 |   |   | 3 |   |
|                          |                                                                                                  |   |   |   |   |
|                          | Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2010 and 2009       |   |   | 4 |   |
|                          |                                                                                                  |   |   |   |   |
|                          | Notes to Condensed Consolidated Financial Statements                                                  |   |   | 5 |   |
|                          |                                                                                                  |   |   |   |   |
| Item 2.                       | Management’s Discussion and Analysis of Financial Condition and Results of Operations.          |   |   | 9 |   |
|                          |                                                                                                  |   |   |   |   |
| Item 3.                       | Quantitative and Qualitative Disclosures About Market Risk.                                           |   |   | 18 |   |
|                          |                                                                                                  |   |   |   |   |
| Item 4.                       | Controls and Procedures.                                                                              |   |   | 18 |   |
|                          |                                                                                                  |   |   |   |   |
| PART II. OTHER INFORMATION    |                                                                                                  |   |   |   |
|                          |                                                                                                  |   |   |   |   |
| Item 1.                       | Legal Proceedings.                                                                                    |   |   | 18 |   |
|                          |                                                                                                  |   |   |   |   |
| Item 1A.                      | Risk Factors.                                                                                         |   |   | 18 |   |
|                          |                                                                                                  |   |   |   |   |
| Item 6.                       | Exhibits.                                                                                             |   |   | 19 |   |
|                          |                                                                                                  |   |   |   |   |
| SIGNATURE                     |                                                                                                  |   | 20     |   |

----

|                                                                                                                                                                     |   | June 30,2010 |    |   | December 31,2009 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|---------|--------|------------------|--------|
| Assets                                                                                                                                                                   |   | (unaudited)  |    |   |             |   |
| Current assets:                                                                                                                                                          |   |         |    |   |             |   |
| Cash and cash equivalents                                                                                                                                                |   | $            | 38,924  |   |             | $      | 48,497 |   |
| Short-term investments                                                                                                                                                   |   |         | 36,621  |   |             |   | 16,482 |   |
| Accounts receivable, net of allowance for doubtful accounts of $1,038 at June 30, 2010 and $1,094 at December 31, 2009                                                   |   |         | 28,393  |   |             |   | 32,092 |   |
| Deferred tax assets, net                                                                                                                                                 |   |         | 5,808   |   |             |   | 5,808 |   |
| Prepaid expenses                                                                                                                                                         |   |         | 6,534   |   |             |   | 5,976 |   |
| Other current assets                                                                                                                                                     |   |         | 4,486   |   |             |   | 3,935 |   |
| Total current assets                                                                                                                                                     |   |         | 120,766 |   |             |   | 112,790 |   |
| Property and equipment, net                                                                                                                                              |   |         | 8,701   |   |             |   | 8,499 |   |
| Deferred tax assets, net                                                                                                                                                 |   |         | 6,787   |   |             |   | 6,505 |   |
| Other assets, net                                                                                                                                                        |   |         | 4,807   |   |             |   | 4,874 |   |
| Total assets                                                                                                                                                             |   | $            | 141,061 |   |             | $      | 132,668 |   |
|                                                                                                                                                                     |   |         |    |   |             |   |   |   |
| Liabilities and Shareholders’ Equity                                                                                                                               |   |         |    |   |             |   |   |   |
| Current liabilities:                                                                                                                                                     |   |         |    |   |             |   |   |   |
| Accounts payable and accrued liabilities                                                                                                                                 |   | $            | 11,886  |   |             | $      | 11,903 |   |
| Accrued compensation and related expenses                                                                                                                                |   |         | 5,003   |   |             |   | 4,946 |   |
| Deferred product revenues                                                                                                                                                |   |         | 5,632   |   |             |   | 5,567 |   |
| Deferred services revenues                                                                                                                                               |   |         | 34,599  |   |             |   | 36,225 |   |
| Total current liabilities                                                                                                                                                |   |         | 57,120  |   |             |   | 58,641 |   |
| Deferred revenue                                                                                                                                                         |   |         | 5,821   |   |             |   | 6,420 |   |
| Total liabilities                                                                                                                                                        |   |         | 62,941  |   |             |   | 65,061 |   |
|                                                                                                                                                                     |   |         |    |   |             |   |   |   |
| Commitments and contingencies (Note 7)                                                                                                                                   |   |         | --      |   |             |   | -- |   |
|                                                                                                                                                                     |   |         |    |   |             |   |   |   |
| Shareholders’ equity:                                                                                                                                              |   |         |    |   |             |   |   |   |
| Preferred stock, no par value: 10,000,000 shares authorized; no shares issued and outstanding                                                                            |   |         | --      |   |             |   | -- |   |
| Common stock, $0.01 par value; 100,000,000 shares authorized; 17,473,661 issued and outstanding at June 30, 2010, 17,276,990 issued and outstanding at December 31, 2009 |   |         | 175     |   |             |   | 173 |   |
| Treasury stock, at cost: 619,204 shares as of June 30, 2010, 815,875 shares as of December 31, 2009                                                                      |   |         | (4,654  | )      |             |   | (6,242 | ) |
| Additional paid-in capital                                                                                                                                               |   |         | 97,560  |   |             |   | 92,815 |   |
| Accumulated deficit                                                                                                                                                      |   |         | (14,961 | )      |             |   | (19,139 | ) |
| Total shareholders’ equity                                                                                                                                         |   |         | 78,120  |   |             |   | 67,607 |   |
| Total liabilities and shareholders’ equity                                                                                                                         |   | $            | 141,061 |   |             | $      | 132,668 |   |

----

|                                         |   | Three Months EndedJune 30, |   |   | Six Months EndedJune 30, |   |
|----------------------------------------------|--------|----------------------------|--------|--------|--------------------------|--------|
|                                         |   | 2010                       |   |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
| Revenues:                                    |   |                       |   |   |                     |   |   |   |   |   |   |   |
| Product                                      |   | $                          | 18,212 |   |                     | $      | 16,494 |   |   | $ | 33,899 |   |   | $ | 29,543 |   |
| Services                                     |   |                       | 20,599 |   |                     |   | 16,401 |   |   |   | 39,935 |   |   |   | 32,828 |   |
| Total revenues                               |   |                       | 38,811 |   |                     |   | 32,895 |   |   |   | 73,834 |   |   |   | 62,371 |   |
| Cost of revenues:                            |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Product                                      |   |                       | 5,502  |   |                     |   | 4,841 |   |   |   | 10,301 |   |   |   | 8,369 |   |
| Services                                     |   |                       | 6,187  |   |                     |   | 5,708 |   |   |   | 11,784 |   |   |   | 11,210 |   |
| Total cost of revenues                       |   |                       | 11,689 |   |                     |   | 10,549 |   |   |   | 22,085 |   |   |   | 19,579 |   |
| Gross profit                                 |   |                       | 27,122 |   |                     |   | 22,346 |   |   |   | 51,749 |   |   |   | 42,792 |   |
| Operating expenses:                          |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Sales and marketing                          |   |                       | 11,480 |   |                     |   | 9,965 |   |   |   | 21,832 |   |   |   | 19,179 |   |
| Research and development                     |   |                       | 6,945  |   |                     |   | 5,986 |   |   |   | 13,370 |   |   |   | 11,613 |   |
| General and administrative                   |   |                       | 4,038  |   |                     |   | 3,416 |   |   |   | 7,899 |   |   |   | 6,604 |   |
| Total operating expenses                     |   |                       | 22,463 |   |                     |   | 19,367 |   |   |   | 43,101 |   |   |   | 37,396 |   |
| Operating income                             |   |                       | 4,659  |   |                     |   | 2,979 |   |   |   | 8,648 |   |   |   | 5,396 |   |
| Other income (expense):                      |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                              |   |                       | 67     |   |                     |   | 73 |   |   |   | 109 |   |   |   | 181 |   |
| Other income (expense), net                  |   |                       | (590   | )      |                     |   | 649 |   |   |   | (1,365 | ) |   |   | 225 |   |
| Total other income (expense), net            |   |                       | (523   | )      |                     |   | 722 |   |   |   | (1,256 | ) |   |   | 406 |   |
| Income before income taxes                   |   |                       | 4,136  |   |                     |   | 3,701 |   |   |   | 7,392 |   |   |   | 5,802 |   |
| Income tax expense                           |   |                       | 1,680  |   |                     |   | 1,604 |   |   |   | 3,068 |   |   |   | 2,482 |   |
| Net income                                   |   | $                          | 2,456  |   |                     | $      | 2,097 |   |   | $ | 4,324 |   |   | $ | 3,320 |   |
|                                         |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Net income per share:                        |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                        |   | $                          | 0.14   |   |                     | $      | 0.12 |   |   | $ | 0.25 |   |   | $ | 0.20 |   |
| Diluted                                      |   |                       | 0.13   |   |                     |   | 0.12 |   |   |   | 0.23 |   |   |   | 0.19 |   |
|                                         |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Shares used to compute net income per share: |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                        |   |                       | 17,445 |   |                     |   | 17,015 |   |   |   | 17,383 |   |   |   | 16,981 |   |
| Diluted                                      |   |                       | 18,772 |   |                     |   | 18,070 |   |   |   | 18,740 |   |   |   | 17,859 |   |

----

|                                               |   | Common Stock |   |   | Treasury |   |   | AdditionalPaid-in |   |   | Accumulated |   |   |    |   |
|----------------------------------------------------|--------|--------------|--------|--------|----------|--------|--------|-------------------|--------|--------|-------------|--------|--------|---------|--------|
|                                               |   | Shares       |   |   | Stock    |   |   | Stock             |   |   | Capital     |   |   | Deficit |   |   | Total |   |
| Balances, December 31, 2009                        |   |         | 17,277 |   |     | $      | 173    |              |   | $      | (6,242      | )      |   | $       | 92,815 |   |   | $ | (19,139 | ) |   | $ | 67,607 |   |
|                                               |   |         |   |   |     |   |   |              |   |   |        |   |   |    |   |   |   |   |   |   |   |   |   |   |
| Stock-based compensation                           |   |         | --     |   |     |   | --     |              |   |   | --          |   |   |    | 1,976  |   |   |   | -- |   |   |   | 1,976 |   |
| Exercise of stock options                          |   |         | 188    |   |     |   | 2      |              |   |   | 1,516       |   |   |    | (29    | ) |   |   | (146 | ) |   |   | 1,343 |   |
| Issuances of common stock                          |   |         | 8      |   |     |   | --     |              |   |   | 72          |   |   |    | 92     |   |   |   | -- |   |   |   | 164 |   |
| Tax benefits from stock-based payment arrangements |   |         | --     |   |     |   | --     |              |   |   | --          |   |   |    | 2,789  |   |   |   | -- |   |   |   | 2,789 |   |
| Comprehensive income:                              |   |         |   |   |     |   |   |              |   |   |        |   |   |    |   |   |   |   |   |   |   |   |   |   |
| Net income                                         |   |         | --     |   |     |   | --     |              |   |   | --          |   |   |    | --     |   |   |   | 4,324 |   |   |   | 4,324 |   |
| Net unrealized investment gain                     |   |         | --     |   |     |   | --     |              |   |   | --          |   |   |    | (83    | ) |   |   | -- |   |   |   | (83 | ) |
| Total comprehensive income                         |   |         | --     |   |     |   | --     |              |   |   | --          |   |   |    | (83    | ) |   |   | 4,324 |   |   |   | 4,241 |   |
| Balances, June 30, 2010                            |   |         | 17,473 |   |     | $      | 175    |              |   | $      | (4,654      | )      |   | $       | 97,560 |   |   | $ | (14,961 | ) |   | $ | 78,120 |   |

----

|                                                                                         |   | Six Months EndedJune 30, |    |
|----------------------------------------------------------------------------------------------|--------|--------------------------|---------|
|                                                                                         |   | 2010                     |    |   | 2009 |   |
| Operating activities:                                                                        |   |                     |    |   |   |   |
| Net income                                                                                   |   | $                        | 4,324   |   |   | $ | 3,320 |   |
| Adjustments to reconcile net income to net cash  provided by operating activities: |   |                     |    |   |   |   |   |   |
| Depreciation                                                                                 |   |                     | 2,058   |   |   |   | 2,094 |   |
| Stock-based compensation expense                                                             |   |                     | 1,976   |   |   |   | 1,572 |   |
| Tax benefits from stock-based payment arrangements                                           |   |                     | (2,789  | ) |   |   | (1,278 | ) |
| Deferred income tax                                                                          |   |                     | (282    | ) |   |   | 538 |   |
| Accretion of investment income                                                               |   |                     | (444    | ) |   |   | (142 | ) |
| Changes in operating assets and liabilities:                                                 |   |                     |    |   |   |   |   |   |
| Accounts receivable                                                                          |   |                     | 3,699   |   |   |   | 2,969 |   |
| Prepaid expenses                                                                             |   |                     | (558    | ) |   |   | 622 |   |
| Other current assets                                                                         |   |                     | (551    | ) |   |   | (1,312 | ) |
| Other assets                                                                                 |   |                     | 67      |   |   |   | 308 |   |
| Accounts payable and accrued liabilities                                                     |   |                     | 2,554   |   |   |   | 1,824 |   |
| Accrued compensation and related expenses                                                    |   |                     | 57      |   |   |   | 368 |   |
| Deferred product revenues                                                                    |   |                     | (32     | ) |   |   | 168 |   |
| Deferred services revenues                                                                   |   |                     | (2,128  | ) |   |   | (1,704 | ) |
| Net cash provided by operating activities                                                    |   |                     | 7,951   |   |   |   | 9,347 |   |
|                                                                                         |   |                     |    |   |   |   |   |   |
| Investing activities:                                                                        |   |                     |    |   |   |   |   |   |
| Sales of available-for-sale investments                                                      |   |                     | 7,300   |   |   |   | 10,800 |   |
| Purchases of available-for-sale investments                                                  |   |                     | (27,078 | ) |   |   | (5,850 | ) |
| Purchases of property and equipment                                                          |   |                     | (2,042  | ) |   |   | (833 | ) |
| Acquisition of intangible and other assets, net of cash and cash equivalents                 |   |                     | --      |   |   |   | (2,249 | ) |
| Net cash (used in) provided by investing activities                                          |   |                     | (21,820 | ) |   |   | 1,868 |   |
|                                                                                         |   |                     |    |   |   |   |   |   |
| Financing activities:                                                                        |   |                     |    |   |   |   |   |   |
| Proceeds from stock options exercised                                                        |   |                     | 1,343   |   |   |   | 732 |   |
| Proceeds from issuance of common stock                                                       |   |                     | 164     |   |   |   | 132 |   |
| Tax benefits from stock-based payment arrangements                                           |   |                     | 2,789   |   |   |   | 1,278 |   |
| Net cash provided by financing activities                                                    |   |                     | 4,296   |   |   |   | 2,142 |   |
|                                                                                         |   |                     |    |   |   |   |   |   |
| Net (decrease) increase in cash and cash equivalents                                    |   |                     | (9,573  | ) |   |   | 13,357 |   |
| Cash and cash equivalents, beginning of year                                                 |   |                     | 48,497  |   |   |   | 34,705 |   |
| Cash and cash equivalents, end of year                                                       |   | $                        | 38,924  |   |   |   | 48,062 |   |
|                                                                                         |   |                     |    |   |   |   |   |   |
| Cash paid during the year for:                                                               |   |                     |    |   |   |   |   |   |
| Interest                                                                                     |   | $                        | 1       |   |   | $ | -- |   |
| Income taxes                                                                                 |   |                     | 520     |   |   |   | 199 |   |
|                                                                                         |   |                     |    |   |   |   |   |   |
| Other non-cash item:                                                                         |   |                     |    |   |   |   |   |   |
| Purchase of property and equipment payable at end of period                                  |   | $                        | 247     |   |   | $ | 78 |   |

----

| 1. | FINANCIAL STATEMENT PRESENTATION |
|----|----------------------------------|

| 2.     | SUMMARY OF CERTAIN ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS |
|----------------------------|-----------------------------------------------------------------------------|

----

| 3.     | FAIR VALUE MEASUREMENTS |
|----------------------------|-------------------------|

| ·   | Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.   |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                             |   | Fair Value Measurements atReporting Date Using |   |
|--------------------------------------------------|--------|------------------------------------------------|--------|
| Description                                      |   | Total                                          |   |   | Quoted Prices inActive Markets forIdentical Assets(Level 1) |   |   | SignificantOther ObservableInputs(Level 2) |   |   | SignificantUnobservableInputs(Level 3) |   |
| Cash & cash equivalents:                     |   |                                           |   |   |   |   |   |   |   |   |   |   |
|      Commercial Paper   |   | $                                              | 849    |   |   | $ | 849 |   |   | $ | -- |   |   | $ | -- |   |
|      Money Market Funds |   |                                           | 18,154 |   |   |   | 18,154 |   |   |   | -- |   |   |   | -- |   |
|      Total              |   | $                                              | 19,003 |   |   | $ | 19,003 |   |   | $ | -- |   |   | $ | -- |   |
|                                             |   |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Short-term investments:                          |   |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial Paper                                 |   | $                                              | 4,248  |   |   | $ | -- |   |   | $ | 4,248 |   |   | $ | -- |   |
| Agency Bonds                                     |   |                                           | 7,557  |   |   |   | -- |   |   |   | 7,557 |   |   |   | -- |   |
| Corporate Notes                                  |   |                                           | 18,421 |   |   |   | -- |   |   |   | 18,421 |   |   |   | -- |   |
| T-Bills                                          |   |                                           | 6,395  |   |   |   | -- |   |   |   | 6,395 |   |   |   | -- |   |
| Total                                            |   | $                                              | 36,621 |   |   | $ | -- |   |   | $ | 36,621 |   |   | $ | -- |   |

| 4. | NET INCOME PER SHARE |
|----|----------------------|

|                                                    |   | Three Months EndedJune 30, |   |   | Six Months EndedJune 30, |   |
|---------------------------------------------------------|--------|----------------------------|--------|--------|--------------------------|--------|
|                                                    |   | 2010                       |   |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
| Net income, as reported (A)                             |   | $                          | 2,456  |   |                     | $      | 2,097 |   |   | $ | 4,324 |   |   | $ | 3,320 |   |
|                                                    |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares of common stock outstanding (B) |   |                       | 17,445 |   |                     |   | 17,015 |   |   |   | 17,383 |   |   |   | 16,981 |   |
| Dilutive effect of employee stock options               |   |                       | 1,327  |   |                     |   | 1,055 |   |   |   | 1,357 |   |   |   | 878 |   |
| Common stock and common stock equivalents (C)           |   |                       | 18,772 |   |                     |   | 18,070 |   |   |   | 18,740 |   |   |   | 17,859 |   |
|                                                    |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Net income per share:                                   |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Basic (A/B)                                             |   | $                          | 0.14   |   |                     | $      | 0.12 |   |   | $ | 0.25 |   |   | $ | 0.20 |   |
| Diluted (A/C)                                           |   |                       | 0.13   |   |                     |   | 0.12 |   |   |   | 0.23 |   |   |   | 0.19 |   |

----

| 5.     | STOCK-BASED COMPENSATION |
|----------------------------|--------------------------|

|                                          |   | Three Months EndedJune 30, |   |   | Six Months EndedJune 30, |   |
|-----------------------------------------------|--------|----------------------------|--------|--------|--------------------------|--------|
|                                          |   | 2010                       |   |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
| Stock-based compensation expense by category: |   |                       |   |   |                     |   |   |   |   |   |   |   |
| Cost of services                              |   | $                          | 63     |   |                     | $      | 50 |   |   | $ | 142 |   |   | $ | 114 |   |
| Sales and marketing                           |   |                       | 318    |   |                     |   | 230 |   |   |   | 642 |   |   |   | 538 |   |
| Research and development                      |   |                       | 298    |   |                     |   | 227 |   |   |   | 596 |   |   |   | 472 |   |
| General and administrative                    |   |                       | 285    |   |                     |   | 218 |   |   |   | 596 |   |   |   | 447 |   |
| Total stock-based compensation expense        |   | $                          | 964    |   |                     | $      | 725 |   |   | $ | 1,976 |   |   | $ | 1,571 |   |

|                                                     |   | Six Months EndedJune 30, |          |
|----------------------------------------------------------|--------|--------------------------|---------------|
| Valuation assumptions for non-performance-based options: |   | 2010                     |          |   | 2009 |   |
| Dividend yield                                           |   |                     | --            | % |   |   | -- | % |
| Expected volatility                                      |   |                     | 67.75 - 69.10 | % |   |   | 67.88 - 68.51 | %  |
| Risk-free interest rate                                  |   |                     | 1.72 - 2.06   | % |   |   | 1.64 -2.36 | % |
| Expected life of option (in years)                       |   | 4.25                     |          |   |   | 4.25 |   |

----

| Valuation assumptions for performance-based options: |   | 2010   |   |   | 2009   |   |
|------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Dividend yield                                       |   |   | --     | %      |   |   | -- | % |
| Expected volatility                                  |   |   | 67.81  | %      |   |   | 67.35 | % |
| Risk-free interest rate                              |   |   | 2.30   | %      |   |   | 1.77 | % |
| Expected life of option (in years)                   |   | 4.75   |   |   | 4.75   |   |

|  Valuation assumptions for annual director options: |   | 2010   |   |    | 2009   |   |
|----------------------------------------------------------|--------|--------|--------|---------|--------|--------|
| Dividend yield                                           |   |   | --     |    |   |   | -- |   |
| Expected volatility                                      |   |   | 64.43  | %  |   |   | 71.48 | %  |
| Risk-free interest rate                                  |   |   | 1.41   | %       |   |   | 2.01 | % |
| Expected life of option (in years)                       |   |   | 3.50   |    |   |   | 3.50 |   |

|                                           |   | As of June 30, 2010 |          |
|------------------------------------------------|--------|---------------------|---------------|
|                                           |   | Options             |          |   | Weighted-AverageExercise Price |   |
|                                           |   |                |          |   |   |   |
| Balances, beginning of year                    |   |                | 3,425,743     |   |   | $ | 9.36 |   |
| Options granted                                |   |                | 566,500       |   |   |   | 19.61 |   |
| Options exercised                              |   |                | (188,099      | ) |   |   | 7.14 |   |
| Options cancelled, forfeited or expired        |   |                | (20,051       | ) |   |   | 24.33 |   |
| Options outstanding                            |   |                | 3,784,093     |   |   |   | 10.90 |   |
| Option price range                             |   | $                   | 2.51 - $43.88 |   |   |   |   |   |
| Weighted-average fair value of options granted |   | $                   | 10.57         |   |   |   |   |   |
| Options exercisable                            |   |                | 2,474,817     |   |   | $ | 8.67 |   |
| Options available for grant                    |   |                | 1,248,394     |   |   |   |   |   |

| 6. | CONCENTRATION OF CREDIT RISK |
|----|------------------------------|

| 7. | COMMITMENTS AND CONTINGENCIES |
|----|-------------------------------|

----

| 8. | INCOME TAXES |
|----|--------------|

|                                                                            |   | Three Months EndedJune 30, |   |   | Six Months EndedJune 30, |   |
|---------------------------------------------------------------------------------|--------|----------------------------|--------|--------|--------------------------|--------|
|                                                                            |   | 2010                       |   |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
| Expected income tax expense at 35% tax rate                                     |   | $                          | (1,447 | )      |                     | $      | (1,296 | ) |   | $ | (2,586 | ) |   | $ | (2,031 | ) |
| State taxes, net of federal benefit                                             |   |                       | (291   | )      |                     |   | (198 | ) |   |   | (528 | ) |   |   | (314 | ) |
| Stock-based compensation expense related to non-deductible stock option expense |   |                       | (67    | )      |                     |   | (107 | ) |   |   | (166 | ) |   |   | (248 | ) |
| Research tax credit                                                             |   |                       | --     |   |                     |   | 63 |   |   |   | -- |   |   |   | 126 |   |
| Disqualifying dispositions                                                      |   |                       | 97     |   |                     |   | -- |   |   |   | 177 |   |   |   | -- |   |
| Other                                                                           |   |                       | 28     |   |                     |   | (66 | ) |   |   | 35 |   |   |   | (15 | ) |
| Income tax benefit (expense)                                                    |   | $                          | (1,680 | )      |                     | $      | (1,604 | ) |   | $ | (3,068 | ) |   | $ | (2,482 | ) |

----

| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
|---------|----------------------------------------------------------------------------------------------|

| · | Forward-Looking Information |
|--------|-----------------------------|

| · | Overview |
|--------|----------|

| · | Financial Highlights |
|--------|----------------------|

| · | Historical Results of Operations |
|--------|----------------------------------|

| · | Comparison of Three and Six Months Ended June 30, 2010 and 2009 |
|--------|-----------------------------------------------------------------|

| · | Liquidity and Capital Resources |
|--------|---------------------------------|

| · | Critical Accounting Policies and Estimates |
|--------|--------------------------------------------|

| ·   | Multichannel contact management and business communications (voice and messaging) using the Session Initiation Protocol (“SIP”) global communications standard that supports VoIP; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Business process automation (“BPA”) using a communications-based approach; and |
|--------------------|--------------------------------------------------------------------------------------------|

| ·   | Content management, including document as well as workflow management. |
|--------------------|------------------------------------------------------------------------|

| ·   | The Contact Center |
|--------------------|--------------------|

| ·   | Enterprise IP Telephony |
|--------------------|-------------------------|

| ·   | Business Process Automation |
|--------------------|-----------------------------|

----

|                                       |   | Three Months EndedJune 30, |   |   | Six Months EndedJune 30, |   |
|--------------------------------------------|--------|----------------------------|--------|--------|--------------------------|--------|
|                                       |   | 2010                       |   |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
|                                       |   |                       |   |   |                     |   |   |   |   |   |   |   |
| Net income, as reported                    |   | $                          | 2,456  |   |                     | $      | 2,097 |   |   | $ | 4,324 |   |   | $ | 3,320 |   |
| Non-cash stock-based compensation expense: |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Cost of services                           |   |                       | 63     |   |                     |   | 50 |   |   |   | 142 |   |   |   | 115 |   |
| Sales and marketing                        |   |                       | 318    |   |                     |   | 230 |   |   |   | 642 |   |   |   | 538 |   |
| Research and development                   |   |                       | 298    |   |                     |   | 227 |   |   |   | 596 |   |   |   | 472 |   |
| General and administrative                 |   |                       | 285    |   |                     |   | 218 |   |   |   | 596 |   |   |   | 447 |   |
| Total                                      |   |                       | 964    |   |                     |   | 725 |   |   |   | 1,976 |   |   |   | 1,572 |   |
| Non-cash income tax expense                |   |                       | 1,547  |   |                     |   | 1,544 |   |   |   | 2,788 |   |   |   | 2,343 |   |
| Non-GAAP net income                        |   | $                          | 4,967  |   |                     | $      | 4,366 |   |   | $ | 9,088 |   |   | $ | 7,235 |   |
|                                       |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Operating income, as reported              |   | $                          | 4,659  |   |                     | $      | 2,979 |   |   | $ | 8,648 |   |   | $ | 5,396 |   |
| Non-cash stock-based compensation expense  |   |                       | 964    |   |                     |   | 725 |   |   |   | 1,976 |   |   |   | 1,572 |   |
| Non-GAAP operating income                  |   | $                          | 5,623  |   |                     | $      | 3,704 |   |   | $ | 10,624 |   |   | $ | 6,968 |   |
|                                       |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Diluted EPS, as reported                   |   | $                          | 0.13   |   |                     | $      | 0.12 |   |   | $ | 0.23 |   |   | $ | 0.19 |   |
| Non-cash stock-based compensation expense  |   |                       | 0.05   |   |                     |   | 0.04 |   |   |   | 0.11 |   |   |   | 0.09 |   |
| Non-cash income tax expense                |   |                       | 0.08   |   |                     |   | 0.08 |   |   |   | 0.14 |   |   |   | 0.13 |   |
| Non-GAAP diluted EPS                       |   | $                          | 0.26   |   |                     | $      | 0.24 |   |   | $ | 0.48 |   |   | $ | 0.41 |   |

----

| Period                  |   | Revenues |   |   | SequentialGrowth % |   |
|-------------------------|--------|----------|--------|--------|--------------------|--------|
| Three Months Ended:     |   |     |   |   |               |   |
| June 30, 2010           |   | $        | 38.8   |   |               |   | 11 | % |
| March 31, 2010          |   |     | 35.0   |   |               |   | (3 | )% |
| December 31, 2009       |   |     | 35.9   |   |               |   | 8 | % |
| September 30, 2009      |   |     | 33.2   |   |               |   | 1 | % |
| June 30, 2009           |   |     | 32.9   |   |               |   | 12 | % |
|                    |   |     |   |   |               |   |   |   |
| Year Ended December 31: |   |     |   |   |               |   |   |   |
| 2009                    |   | $        | 131.4  |   |               |   | 8 | % |
| 2008                    |   |     | 121.4  |   |               |   | 10 | %  |
| 2007                    |   |     | 109.9  |   |               |   | 32 | %  |

----

|                        |   | Three Months EndedJune 30, |   |   | Six Months EndedJune 30, |   |
|-----------------------------|--------|----------------------------|--------|--------|--------------------------|--------|
|                        |   | 2010                       |   |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
| Revenues:                   |   |                       |   |   |                     |   |   |   |   |   |   |   |
| Product                     |   |                       | 47     | %      |                     |   | 50 | % |   |   | 46 | % |   |   | 47 | % |
| Services                    |   |                       | 53     | %      |                     |   | 50 | % |   |   | 54 | % |   |   | 53 | % |
| Total revenues              |   |                       | 100    | %      |                     |   | 100 | % |   |   | 100 | % |   |   | 100 | % |
| Cost of revenues:           |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Product                     |   |                       | 14     | %      |                     |   | 15 | % |   |   | 14 | % |   |   | 13 | % |
| Services                    |   |                       | 16     | %      |                     |   | 17 | % |   |   | 16 | % |   |   | 18 | % |
| Total cost of revenues      |   |                       | 30     | %      |                     |   | 32 | % |   |   | 30 | % |   |   | 31 | % |
| Gross profit                |   |                       | 70     | %      |                     |   | 68 | % |   |   | 70 | % |   |   | 69 | % |
| Operating expenses:         |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Sales and marketing         |   |                       | 30     | %      |                     |   | 30 | % |   |   | 30 | % |   |   | 31 | % |
| Research and development    |   |                       | 18     | %      |                     |   | 18 | % |   |   | 18 | % |   |   | 19 | % |
| General and administrative  |   |                       | 10     | %      |                     |   | 11 | % |   |   | 11 | % |   |   | 11 | % |
| Total operating expenses    |   |                       | 58     | %      |                     |   | 59 | % |   |   | 59 | % |   |   | 60 | % |
| Operating income            |   |                       | 12     | %      |                     |   | 9 | % |   |   | 11 | % |   |   | 9 | % |
| Other income (expense):     |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Interest income, net        |   |                       | --     | %      |                     |   | -- | % |   |   | -- | % |   |   | -- | % |
| Other income (expense), net |   |                       | (2)    | %      |                     |   | 2 | % |   |   | (2) | % |   |   | -- | % |
| Total other income          |   |                       | (2)    | %      |                     |   | 2 | % |   |   | (2) | % |   |   | -- | % |
| Income before income taxes  |   |                       | 10     | %      |                     |   | 11 | % |   |   | 9 | % |   |   | 9 | % |
| Income tax expense          |   |                       | (4     | )%     |                     |   | (5 | )% |   |   | (4 | )% |   |   | (4 | )% |
| Net income                  |   |                       | 6      | %      |                     |   | 6 | % |   |   | 5 | % |   |   | 5 | % |

| Product Revenues         |   | Three Months EndedJune 30, |   |   | Six Months EndedJune 30, |   |
|-------------------------------|--------|----------------------------|--------|--------|--------------------------|--------|
|                          |   | 2010                       |   |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
|                          |   | ($ in thousands)           |   |
| Product revenues              |   | $                          | 18,212 |   |                     | $      | 16,494 |   |   | $ | 33,899 |   |   | $ | 29,543 |   |
| Change from prior year period |   |                       | 10     | %      |                     |   | 8 | % |   |   | 15 | % |   |   | (2 | )% |
| Percentage of total revenues  |   |                       | 47     | %      |                     |   | 50 | % |   |   | 46 | % |   |   | 47 | % |

----

| Services Revenues             |   | Three Months EndedJune 30, |   |   | Six Months EndedJune 30, |   |
|-------------------------------|--------|----------------------------|--------|--------|--------------------------|--------|
|                          |   | 2010                       |   |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
|                          |   | ($ in thousands)           |   |
| Services revenues             |   | $                          | 20,599 |   |                     | $      | 16,401 |   |   | $ | 39,935 |   |   | $ | 32,828 |   |
| Change from prior year period |   |                       | 26     | %      |                     |   | 7 | % |   |   | 22 | % |   |   | 10 | % |
| Percentage of total revenues  |   |                       | 53     | %      |                     |   | 50 | % |   |   | 54 | % |   |   | 53 | % |

| Cost of Revenues                           |   | Three Months EndedJune 30, |   |   | Six Months EndedJune 30, |   |
|--------------------------------------------|--------|----------------------------|--------|--------|--------------------------|--------|
|                                       |   | 2010                       |   |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
|                                       |   | ($ in thousands)           |   |
| Cost of revenues:                          |   |                       |   |   |                     |   |   |   |   |   |   |   |
| Product                                    |   | $                          | 5,502  |   |                     | $      | 4,841 |   |   | $ | 10,301 |   |   | $ | 8,369 |   |
| Services                                   |   |                       | 6,187  |   |                     |   | 5,708 |   |   |   | 11,784 |   |   |   | 11,210 |   |
| Total cost of revenues                     |   | $                          | 11,689 |   |                     | $      | 10,549 |   |   |   | 22,085 |   |   |   | 19,579 |   |
| Change from prior year period              |   |                       | 11     | %      |                     |   | 6 | % |   |   | 13 | % |   |   | 3 | % |
| Product costs as a % of product revenues   |   |                       | 30     | %      |                     |   | 29 | % |   |   | 30 | % |   |   | 28 | % |
| Services costs as a % of services revenues |   |                       | 30     | %      |                     |   | 35 | % |   |   | 30 | % |   |   | 34 | % |

----

| Gross Profit                  |   | Three Months EndedJune 30, |   |   | Six Months EndedJune 30, |   |
|-------------------------------|--------|----------------------------|--------|--------|--------------------------|--------|
|                          |   | 2010                       |   |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
|                          |   | ($ in thousands)           |   |
| Gross profit                  |   | $                          | 27,122 |   |                     | $      | 22,346 |   |   | $ | 51,749 |   |   | $ | 42,792 |   |
| Change from prior year period |   |                       | 21     | %      |                     |   | 8 | % |   |   | 21 | % |   |   | 4 | % |
| Percentage of total revenues  |   |                       | 70     | %      |                     |   | 68 | % |   |   | 70 | % |   |   | 69 | % |

| Sales and Marketing                |   | Three Months EndedJune 30, |   |   | Six Months EndedJune 30, |   |
|------------------------------------|--------|----------------------------|--------|--------|--------------------------|--------|
|                               |   | 2010                       |   |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
|                               |   | ($ in thousands)           |   |
| Sales and marketing expenses       |   | $                          | 11,480 |   |                     | $      | 9,965 |   |   | $ | 21,832 |   |   | $ | 19,179 |   |
| Change from prior year period      |   |                       | 15     | %      |                     |   | (2 | )% |   |   | 14 | % |   |   | (6 | )% |
| Percentage of total revenues       |   |                       | 30     | %      |                     |   | 30 | % |   |   | 30 | % |   |   | 31 | % |
| Percentage of net product revenues |   |                       | 90     | %      |                     |   | 86 | % |   |   | 93 | % |   |   | 91 | % |

| Research and Development          |   | Three Months EndedJune 30, |   |   | Six Months EndedJune 30, |   |
|-----------------------------------|--------|----------------------------|--------|--------|--------------------------|--------|
|                              |   | 2010                       |   |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
|                              |   | ($ in thousands)           |   |
| Research and development expenses |   | $                          | 6,945  |   |                     | $      | 5,986 |   |   | $ | 13,370 |   |   | $ | 11,613 |   |
| Change from prior year period     |   |                       | 16     | %      |                     |   | 12 | % |   |   | 15 | % |   |   | 13 | % |
| Percentage of total revenues      |   |                       | 18     | %      |                     |   | 18 | % |   |   | 18 | % |   |   | 19 | % |

----

| General and Administrative          |   | Three Months EndedJune 30, |   |   | Six Months EndedJune 30, |   |
|-------------------------------------|--------|----------------------------|--------|--------|--------------------------|--------|
|                                |   | 2010                       |   |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
|                                |   | ($ in thousands)           |   |
| General and administrative expenses |   | $                          | 4,038  |   |                     | $      | 3,416 |   |   | $ | 7,899 |   |   | $ | 6,604 |   |
| Change from prior year period       |   |                       | 18     | %      |                     |   | (11 | )% |   |   | 20 | % |   |   | (15 | )% |
| Percentage of total revenues        |   |                       | 10     | %      |                     |   | 11 | % |   |   | 11 | % |   |   | 11 | % |

| Interest Income, Net                                        |   | Three Months EndedJune 30, |   |   | Six Months EndedJune 30, |   |
|-------------------------------------------------------------|--------|----------------------------|--------|--------|--------------------------|--------|
|                                                        |   | 2010                       |   |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
|                                                        |   | ($ in thousands)           |   |
| Cash, cash equivalents and short-term investments (average) |   | $                          | 73,473 |   |                     | $      | 51,941 |   |   | $ | 70,262 |   |   | $ | 49,781 |   |
| Interest income                                             |   |                       | 67     |   |                     |   | 73 |   |   |   | 109 |   |   |   | 181 |   |
| Return on investment (annualized)                           |   |                       | 0.36   | %      |                     |   | 0.56 | % |   |   | 0.31 | % |   |   | 0.73 | % |

| Other Income (Expense), Net |   | Three Months EndedJune 30, |   |   | Six Months EndedJune 30, |   |
|-----------------------------|--------|----------------------------|--------|--------|--------------------------|--------|
|                        |   | 2010                       |   |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
|                        |   | ($ in thousands)           |   |
| Other income (expense), net |   | $                          | (590   | )      |                     | $      | 649 |   |   | $ | (1,365 | ) |   | $ | 225 |   |

| Income Tax Expense |   | Three Months EndedJune 30, |   |   | Six Months EndedJune 30, |   |
|--------------------|--------|----------------------------|--------|--------|--------------------------|--------|
|               |   | 2010                       |   |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
|               |   | ($ in thousands)           |   |
| Income tax expense |   | $                          | 1,680  |   |                     | $      | 1,604 |   |   | $ | 3,068 |   |   | $ | 2,482 |   |

----

|                      |   | June 30,2010     |   |   | December 31,2009 |   |
|---------------------------|--------|------------------|--------|--------|------------------|--------|
|                      |   | ($ in thousands) |   |
| Cash and cash equivalents |   | $                | 38,924 |   |             | $      | 48,497 |   |
| Short-term investments    |   |             | 36,621 |   |             |   | 16,482 |   |
| Total liquidity           |   | $                | 75,545 |   |             | $      | 64,979 |   |

|                                                 |   | Six Months Ended June 30, |    |
|------------------------------------------------------|--------|---------------------------|---------|
|                                                 |   | 2010                      |    |   | 2009 |   |
| Beginning cash and cash equivalents                  |   | $                         | 48,497  |   |   | $ | 34,705 |   |
| Cash provided by operating activities                |   |                      | 7,951   |   |   |   | 9,347 |   |
| Cash (used in) provided by investing activities |   |                      | (21,820 | ) |   |   | 1,868 |   |
| Cash provided by financing activities                |   |                      | 4,296   |   |   |   | 2,142 |   |
| Ending cash and cash equivalents                     |   | $                         | 38,924  |   |   | $ | 48,062 |   |

----

| Item 3. | Quantitative and Qualitative Disclosures about Market Risk. |
|---------|-------------------------------------------------------------|

| Item 4. | Controls and Procedures. |
|---------|--------------------------|

| Item 1. | Legal Proceedings. |
|---------|--------------------|

| Item 1A. | Risk Factors. |
|----------|---------------|

----

| Item 6. | Exhibits. |
|---------|-----------|

|   | (a) | Exhibits |
|--------|-----|----------|

|           |                |   |                                                                                                                                                                                                 | Incorporated by Reference |                            |    |   |
|----------------|---------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------|---------------------------------|---------|--------|
| Exhibit Number | Exhibit Description |   | Form                                                                                                                                                                                                 |                      |                            | Exhibit |   | Filing Date |   | Filed Herewith |   |
|           | 3.1                 |   | Restated Articles of Incorporation of the Company, as currently in effect                                                                                                                            |                      | S-1(Registration No. 333-79509) |    |   |   | 3.1 |   | 5/28/1999 |   |   |   |
|           |                |   |                                                                                                                                                                                                 |                      |                            |    |   |   |   |   |   |   |   |   |
|           | 3.2                 |   | Amended By-Laws of the Company, as currently in effect                                                                                                                                               |                      |                            | 8-K     |   |   |   | 3.2 |   | 7/28/2009 |   |   |   |
|           |                |   |                                                                                                                                                                                                 |                      |                            |    |   |   |   |   |   |   |   |   |   |
|           | 10.1                |   | Interactive Intelligence, Inc. 2006 Equity Incentive Plan, As Amended May 20, 2010                                                                                                                   |                      |                            | 8-K     |   |   |   | 10.33 |   | 5/24/2010 |   |   |   |
|           |                |   |                                                                                                                                                                                                 |                      |                            |    |   |   |   |   |   |   |   |   |   |
|           | 31.1                |   | Certification of the Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002  |                      |                            |    |   |   |   |   |   |   |   |   | X |   |
|           |                |   |                                                                                                                                                                                                 |                      |                            |    |   |   |   |   |   |   |   |   |   |   |
|           | 31.2                |   | Certification of the Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002  |                      |                            |    |   |   |   |   |   |   |   |   | X |   |
|           |                |   |                                                                                                                                                                                                 |                      |                            |    |   |   |   |   |   |   |   |   |   |   |
|           | 32.1                |   | Certification of the Chief Executive Officer, pursuant to 18 U. S. C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                        |                      |                            |    |   |   |   |   |   |   |   |   | X |   |
|           |                |   |                                                                                                                                                                                                 |                      |                            |    |   |   |   |   |   |   |   |   |   |   |
|           | 32.2                |   | Certification of the Chief Financial Officer, pursuant to 18 U. S. C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                        |                      |                            |    |   |   |   |   |   |   |   |   | X |   |

----

|                                  |   |   |   |   |   | Interactive Intelligence, Inc.(Registrant)  |
|---------------------------------------|--------|--------|--------|--------|--------|---------------------------------------------|
|                                  |   |   |   |   |   |                                        |   |   |
| Date:   August 6, 2010 |   |   |   | By:    |   | /s/     Stephen R. Head |
|                                  |   |   |   |   |   |                                        |   | Stephen R. HeadChief Financial Officer,Vice President of Finance and Administration,Secretary and Treasurer(Principal Financial Officer and Principal Accounting Officer) |

----