Pre-Paid Legal Services

Net cash provided from operating activities decreased 3% to $34.3 million for the first half of 2010 from $35.5 million for 2009. During the first half of 2010, we returned $5.4 million to shareholders through the repurchase of 123,807 shares of common stock, at an average per share price of $43.41. Since April 1999, we have returned $463.2 million to shareholders through the purchase of 15.2 million shares, average price of $30.43 per share, and $17.1 million in dividends for a combined total of $480.3 million representing more than 100% of our net earnings during the same timeframe. At June 30, 2010, we had $28.1 million of debt outstanding and $70.1 million in cash and cash equivalents and unpledged investments and had availability pursuant to our lending agreements to spend approximately $26.7 million for share repurchases and/or dividends.

Second quarter 2010 membership fees decreased $581,000 to $106.7 million from $107.3 million for the first quarter of 2010. Associate services revenues decreased during the 2010 second quarter by approximately $1.5 million to $6.5 million from $8.0 million for the 2010 first quarter and associate services and direct marketing expenses increased by $2.0 million during the same period. Membership benefits totaled $35.9 million in the second quarter of 2010 compared to $35.7 million for the 2010 first quarter and represented 34% and 33%, respectively, of membership fees for the two periods. Commissions to associates totaled $29.2 million in the 2010 second quarter compared to $29.5 million for the 2010 first quarter and represented 27% and 28%, respectively, of membership fees for the two periods. General and administrative expenses increased $142,000 during the 2010 second quarter to $12.4 million compared to $12.3 million for the 2010 first quarter and represented 12% and 11%, respectively, of membership fees for both periods. The $142,000 increase in general and administrative expenses included increases in employee cost and consulting fees which were partially offset by decreases in accounting fees, bank service charges, legal expenses and telecommunications fees.

Marriot

SECOND QUARTER HIGHLIGHTS
Second quarter diluted earnings per share (EPS) totaled $0.31, ahead of expectations and prior year results;

Total fee revenue increased 13 percent to $287 million as a result of strong revenue per available room (REVPAR) and unit growth. Incentive fees climbed 31 percent;

Worldwide company-operated comparable REVPAR rose 9.9 percent (an 8.2 percent increase using constant dollars). Average daily rate rose 1.6 percent (a 0.1 percent increase using constant dollars);

North American company-operated comparable REVPAR increased 7.9 percent (a 7.5 percent increase using constant dollars) with a 1.2 increase in average daily rate (a 0.8 percent increase using constant dollars);

The company’s worldwide pipeline of hotels under construction, awaiting conversion or approved for development totaled nearly 95,000 rooms, including over 36,000 rooms outside North America;

Over 6,500 rooms opened during the second quarter, including over 1,800 rooms in international markets and nearly 1,300 rooms converting from competitor brands. At the end of the second quarter, Marriott’s newest brand, The Autograph Collection, included 10 hotels with over 1,500 rooms.

SECOND QUARTER 2010 RESULTS
Second quarter 2010 net income totaled $119 million, a 42 percent increase compared to second quarter 2009 adjusted net income. Diluted EPS totaled $0.31, a 35 percent increase from adjusted diluted EPS in the year-ago quarter. On April 22, 2010, the company forecasted second quarter diluted EPS of $0.25 to $0.29.
Adjusted results for the 2009 second quarter excluded $57 million pretax ($30 million after-tax and $0.08 per diluted share) of restructuring costs and other charges and $17 million of non-cash charges ($0.05 per diluted share) in the provision for income taxes.

Reported net income totaled $119 million in the second quarter of 2010 compared to reported net income of $37 million in the year-ago quarter. Reported diluted EPS was $0.31 in the second quarter of 2010 compared to reported EPS of $0.10 in the second quarter of 2009.

J.W. Marriott, Jr., chairman and chief executive officer of Marriott International, said, “This is an exciting time for Marriott. Business and leisure stays at our hotels are trending up. Revenue per available room increased more than expected in the second quarter and room rates at company-operated hotels in North America rose for the first time in nearly two years.
“Totaling approximately 95,000 rooms, our development pipeline reflects expanding global opportunities. We opened over 6,500 rooms during the quarter. With strong interest by owners and franchisees in our brands, we expect to open over 30,000 rooms in 2010, including conversions to our new brand, the Autograph Collection.
“We are seeing major international growth. At the end of the quarter, a record 39 percent of our development pipeline was outside North America as were two-thirds of our worldwide rooms under construction. During the quarter, we opened superb new international hotels in Phuket, Shanghai, St. Petersburg and Budapest.
“We anticipate even more favorable pricing in the second half of 2010 and into 2011. Combined with productivity improvements achieved over the last year, strong unit growth and increasing demand, we look forward to growing cash flow and strong earnings in 2010 and beyond.”

For the 2010 second quarter, REVPAR for worldwide comparable company-operated properties increased 9.9 percent (an 8.2 percent increase using constant dollars) and REVPAR for worldwide comparable systemwide properties increased 8.5 percent (a 7.0 percent increase using constant dollars).

International comparable company-operated REVPAR rose 14.1 percent (a 9.8 percent increase using constant dollars), including a 2.0 percent increase in average daily rate (a 1.8 percent decline using constant dollars) in the second quarter of 2010.
In North America, comparable company-operated REVPAR increased 7.9 percent (a 7.5 percent increase using constant dollars) in the second quarter of 2010. On a constant dollar basis, REVPAR for comparable company-operated North American full-service and luxury hotels (including Marriott Hotels & Resorts, The Ritz-Carlton and Renaissance Hotels) increased 9.0 percent with a 1.7 percent increase in average daily rate.
Marriott added 46 new properties (6,568 rooms) to its worldwide lodging portfolio in the 2010 second quarter and 14 properties (2,311 rooms) exited the system during the quarter. At quarter-end, the company’s lodging group encompassed 3,489 properties and timeshare resorts for a total of over 607,000 rooms.
The company’s worldwide pipeline of hotels under construction, awaiting conversion or approved for development totaled nearly 600 properties with approximately 95,000 rooms at quarter-end.
Early in the 2010 third quarter, the company launched Marriott Vacation Club Destinations (MVCD), a points-based program that offers increased usage and purchase flexibility to its owners. While Marriott Vacation Clubs in North America will offer this improved product to new customers going forward, existing owners will retain full rights and privileges of interval ownership as well as the opportunity to participate in MVCD.

MARRIOTT REVENUES totaled nearly $2.8 billion in the 2010 second quarter compared to approximately $2.6 billion for the second quarter of 2009. Base management and franchise fees rose 10 percent to $241 million reflecting higher REVPAR and fees from new hotels. Second quarter incentive management fees increased 31 percent to $46 million. In the second quarter, 25 percent of company-managed hotels earned incentive management fees compared to 23 percent in the year-ago quarter. Approximately 62 percent of incentive management fees came from hotels outside North America in the 2010 quarter compared to 61 percent in the 2009 quarter.

Worldwide comparable company-operated house profit margins increased 90 basis points in the second quarter reflecting higher occupancy, slight rate increases and strong productivity.
Owned, leased, corporate housing and other revenue, net of direct expenses, increased $10 million in the 2010 second quarter, to $31 million, including a $6 million favorable impact of hotel termination fees net of property closing costs. Operating results at owned and leased hotels improved year-over-year with stronger occupancy and margins.
Second quarter adjusted Timeshare segment contract sales decreased 21 percent to $167 million (excluding a $6 million allowance for fractional and residential contract cancellations recorded in the quarter) largely due to tough comparisons as a result of the 25th anniversary promotion in the year-ago quarter. In the prior year’s quarter, adjusted Timeshare segment contract sales totaled $212 million (excluding a $3 million allowance for fractional and residential contract cancellations).

In the second quarter, timeshare sales and services revenue totaled $289 million and, net of expenses, totaled $50 million for the quarter. Adjusting for restructuring and other charges, as well as the impact of consolidating securitized loans had that occurred at the beginning of 2009 rather than 2010, second quarter 2009 timeshare sales and services revenue would have totaled $331 million and, net of direct expenses, would have totaled $48 million. These adjustments for the 2009 quarter are shown on page A-11.
Despite lower contract sales, development revenue, net of expense, benefited from lower marketing and sales costs, as well as price increases year-over-year. Timeshare segment results include Timeshare sales and services revenue, net of direct expenses, as well as base management fees, equity earnings (losses), noncontrolling interest, interest expense and general, administrative and other expenses associated with the timeshare business. Timeshare segment results for the 2010 second quarter, shown on page A-9, totaled $30 million, including $14 million of interest expense related to the consolidation of securitized Timeshare notes. Adjusting for restructuring and other charges, as well as the impact of consolidating securitized loans had that occurred at the beginning of 2009 rather than 2010, second quarter 2009 timeshare segment results would have totaled $29 million, including $18 million of interest expense related to the consolidation of securitized Timeshare notes. These adjustments for the 2009 quarter are shown on page A-11.
GENERAL, ADMINISTRATIVE and OTHER expenses for the 2010 second quarter increased 4 percent to $142 million, compared to adjusted expenses of $136 million in the year-ago quarter, and included higher incentive compensation costs partially offset by lower legal and deferred compensation expenses.

GAINS AND OTHER INCOME totaled $3 million primarily reflecting $2 million of gains on the sale of real estate and $1 million of returns from joint venture investments. The prior year’s second quarter gains and other income totaled $3 million largely related to gains on the sale of real estate.

INTEREST EXPENSE increased $16 million to $44 million in the second quarter primarily due to $14 million of interest expense related to the consolidation of debt associated with securitized Timeshare notes, lower capitalized interest and interest expense associated with the company’s deferred compensation plan partially offset by the impact of lower debt balances and interest rates. Adjusting for the impact of consolidating securitized loans had that occurred at the beginning of 2009 rather than 2010, second quarter 2009 interest expense would have been $18 million higher.
Earnings before Interest Expense, Taxes, Depreciation and Amortization (EBITDA)
EBITDA totaled $278 million in the 2010 second quarter. In the 2009 second quarter, adjusted EBITDA totaled $220 million. If the consolidation of securitized timeshare notes had occurred at the beginning of 2009, adjusted EBITDA in the 2009 second quarter would have totaled $252 million.
BALANCE SHEET
At the end of the second quarter 2010, total debt was $2,911 million and cash balances totaled $100 million, compared to $2,298 million in debt and $115 million of cash at year-end 2009. Adjusting for the debt associated with securitized Timeshare mortgage notes now required to be consolidated under new accounting rules, adjusted total debt, net of cash, has declined by over $350 million since year-end 2009.

At the end of the 2010 second quarter, Marriott had borrowings of approximately $100 million outstanding under its $2.4 billion bank revolver, about $900 million lower than the end of the 2009 first quarter.

COMMON STOCK
Weighted average fully diluted shares outstanding used to calculate diluted EPS totaled 377.4 million in the 2010 second quarter compared to weighted average fully diluted shares outstanding of 366.0 million used to calculate adjusted diluted EPS in the year-ago quarter.
The remaining share repurchase authorization, as of June 18, 2010, totaled 21.3 million shares. No share repurchases are planned for 2010.

THIRD QUARTER 2010 OUTLOOK
For the third quarter, the company assumes comparable systemwide REVPAR on a constant dollar basis will increase 5 to 7 percent in North America, 7 to 9 percent outside North America and 6 to 8 percent worldwide.
The company assumes third quarter 2010 Timeshare contract sales will total $165 million to $175 million and Timeshare sales and services revenue, net of direct expenses, will total approximately $50 million to $55 million. With these assumptions, Timeshare segment results for the third quarter, including interest expense associated with securitized notes, are expected to total $30 million to $35 million.
FULL YEAR 2010 OUTLOOK
For the full year 2010, the company assumes comparable systemwide REVPAR on a constant dollar basis will increase 4 to 6 percent in North America, 6 to 8 percent outside North America and 4 to 6 percent worldwide.

The company expects to open over 30,000 rooms in 2010 as most hotels expected to open are already under construction or undergoing conversion from other brands.
The company continues to estimate that, on a full-year basis, one point of worldwide systemwide REVPAR impacts total fees by approximately $10 million to $15 million pretax and impacts owned, leased, corporate housing and other revenue, net of direct expense, by approximately $3 million to $5 million pretax.
For its timeshare business, the company assumes 2010 timeshare contract sales will be in line with 2009 levels. For 2010, Timeshare sales and services revenue, net of direct expenses, is expected to total $205 million to $215 million. Timeshare segment results for 2010, including interest expense associated with previously securitized notes, is expected to total $115 million to $125 million.
The company expects that its 2010 general, administrative and other expenses will total $650 million to $660 million reflecting higher incentive compensation.

Noble Corporation

Noble also has scheduled a conference call and webcast related to its second-quarter 2010 results on Tuesday, July 20, 2010, at 8:00 a.m. U.S. Central Daylight Time. Interested parties are invited to listen to the call by dialing 1-866-461-7129, or internationally 1-706-679-3084, using access code: 38611304 or by asking for the Noble Corporation conference call. Interested parties may also listen over the Internet through a link posted in the Investor Relations section of the Company’s Web site.

A replay of the conference call will be available on Tuesday, July 20, 2010, beginning at 11:00 a.m. U.S. Central Daylight Time, through Tuesday, July 27, 2010, ending at 5:00 p.m. U.S. Central Daylight Time.

Netflix

Netflix management will host a live Q&A session at 3:00 p.m. Pacific Time to discuss the Company’s financial results and business outlook, with questions submitted via email. Please email your questions to ir@netflix.com. The company will read the questions aloud on the call and respond to as many questions as possible.

A live webcast and the replay of the earnings Q&A session can be accessed on the investor relations section of the Netflix website at http://ir.netflix.com.

Dot Hill Systems

Guidance for Second Quarter 2010
Following a comprehensive financial review and with its restructuring plan now underway, the Company anticipates second quarter 2010 net revenue to be in the range of $62 to $65 million and a non-GAAP net loss per share in the range of $0.07 to $0.10. Management expects cash and cash equivalents on June 30, 2010 to be between $40 and $43 million.

Restructuring Details
The Company additionally announced the implementation of a restructuring and cost reduction plan, referred to as the 2010 Plan, that will include severance and related costs for an approximate 10% reduction in its global workforce and the acceleration of the closure of the Company’s Carlsbad, California facility. The Company expects to record severance costs in the range of $300,000 to $500,000 and facility reduction costs in the range of $200,000 to $350,000 in connection with the 2010 Plan. In addition, the Company announced a 10% reduction in the annual base salaries of its vice-president and executive management teams, including the Company’s President and Chief Executive Officer and Chief Financial Officer, and a 5% reduction in the annual base salaries of certain of its employees below the vice-president level.

“We expect to realize the majority of the benefits associated with these actions starting July 1,” said Dana Kammersgard, President and Chief Executive Officer. “The aggregate benefit is a significant reduction in break-even levels and our projections indicate that we should break-even on a non-GAAP EBITDA basis by the fourth quarter of 2010. In our last earnings call, I indicated our intent to break-even at between $60 million to $65 million in quarterly revenues, depending on product and customer mix. I believe these actions should enable consistent financial improvements throughout the remainder of this year and achievement of this objective.”

Conference Call Information:
Dot Hill’s second quarter 2010 update conference call is scheduled to take place on June 15, 2010 at 4:30 p.m. ET. Please join us for a live audio webcast beginning at 4:30 pm ET at www.dothill.com in the Investor Relations section. If you prefer to join via telephone, please dial (877) 303-3196 (U.S.) or (408) 427-3864 (International) at least five minutes prior to the start of the call. A replay of the webcast is scheduled to be available on the Dot Hill web site following the conference call. For a telephone replay, dial (800) 642-1687 (U.S.) or (706) 645-9291 (International) and enter conference ID# 80213398.

About Non-GAAP Financial Measures
This press release contains financial results that exclude the effects of stock-based compensation expense, severance costs, restructuring costs, intangible asset amortization, transaction expenses associated with our acquisition of Cloverleaf, a contingent consideration adjustment and foreign currency gains or losses, and are not in accordance with U.S. generally accepted accounting principles (GAAP). The Company believes that these non-GAAP financial measures provide meaningful supplemental information to both management and investors that is indicative of the Company’s core operating results and facilitates comparison of operating results across reporting periods. The Company uses these non-GAAP measures when evaluating its financial results as well as for internal resource management, planning and forecasting purposes. These non-GAAP measures should not be viewed in isolation from or as a substitute for the Company’s financial results in accordance with GAAP.

Coldwater Creek

First Quarter 2010 Operating Results
Net sales were $243.1 million, compared with $228.4 million in the fiscal 2009 first quarter. Sales from the retail segment, which includes the Company’s premium retail stores, outlet stores and day spa locations, were $176.0 million versus $170.7 million in the fiscal 2009 first quarter. Comparable premium store sales increased 1.0 percent in the first quarter versus the first quarter of fiscal 2009. Direct sales (phone and internet) increased 16.3% to $67.1 million from $57.7 million in the same period last year.

Gross profit was $90.9 million, or 37.4 percent of net sales, compared with $71.1 million, or 31.1 percent of net sales, for the fiscal 2009 first quarter. The 630 basis point increase in gross profit margin was primarily due to an increase in merchandise margin and to a lesser extent leverage of occupancy expenses resulting from higher sales.

Selling, general and administrative expenses (“SG&A”) were $86.5 million, or 35.6 percent of net sales, compared with $82.7 million, or 36.2 percent of net sales, for the fiscal 2009 first quarter. The increase in SG&A was driven by higher marketing expense and employee related costs as compared with the first quarter last year. SG&A as a percent of sales improved by 60 basis points year-over-year.
Net income for the three-month period was $2.3 million, or $0.03 per diluted share, compared with a net loss of $7.6 million, or $0.08 per share, for the three-month period ended May 2, 2009.

“We are pleased with the improvement in our first quarter results, which began to benefit from the steps we are taking to reposition the company for profitable growth,” stated Dennis Pence, President and Chief Executive Officer of Coldwater Creek. “During the quarter, our realigned price points and improved sale strategy led to increases in average unit retail and merchandise margin. In addition, we experienced strong sales growth in our Ecommerce business as a result of favorable customer response to our website enhancements. This, combined with our continued focus on expense controls, contributed to a meaningful expansion in our operating margin during the quarter.”

“As we look ahead, we plan to build upon the strategies that led to our improved first quarter results; however, we remain intently focused on aligning our inventory with our expected sales trends,” Mr. Pence continued. “As planned, during the second quarter, we will aggressively work to reduce our inventory levels, which will pressure realized margins. In addition, we remain cautious as the early response to our summer collection has been softer than expected and will likely put additional pressure on our second quarter margins. However, we continue to believe we are on track to achieve our original earnings expectations for the year.”
Balance Sheet
At May 1, 2010, cash totaled $61.2 million, as compared with $74.9 million in cash at May 2, 2009. Premium retail store inventory per square foot, including retail inventory in the distribution center, increased by approximately 16 percent over historically low inventory levels at the end of the first quarter of fiscal 2009, representing a 1% decrease on a two-year basis. Working capital increased by $21.2 million to $109.9 million at May 1, 2010, from $88.7 million at May 2, 2009.

Store Openings
The Company opened four new premium retail stores and closed one premium retail store and one outlet store during the three-month period ended May 1, 2010, ending the quarter with 359 premium retail stores. The Company plans to open approximately 20 new retail stores in fiscal 2010.

Outlook
The Company expects to report a loss in the second quarter of fiscal 2010; however, it expects an improvement over the $0.05 loss per share in the second quarter of fiscal 2009. This assumes a mid-single digit year-over-year percentage increase in total net sales. For fiscal 2010, the company continues to expect that it will report earnings per share of between $0.08 and $0.12, with the majority of the earnings growth coming in the second half of the year. This compares to a fiscal 2009 loss per share of $0.61, which included charges of approximately $0.33 per share related to the income tax valuation allowance, separation agreement expenses, and non-cash asset impairment charges.