Good afternoon and welcome, ladies and gentlemen, to the Acacia Research 2018 First Quarter Earnings Release Conference Call. At this time, I would like to inform you that this conference is being recorded and that all participants are in a listen-only mode. I will now turn the conference over to Mr. Rob Stewart. Please go ahead, sir.

Welcome and thank you for joining today's first quarter 2018 shareholder conference call. I am Rob Stewart, President of Acacia Research. With me this afternoon are Clayton Haynes, our CFO; and Ed Treska, our Head of Licensing and General Counsel. Today, Clayton, will review our financial performance, and Ed, will review the status of some of our current licensing and enforcement program. I will then provide a business update for Acacia. First, our Safe Harbor statement. Today's call may involve what the SEC considers to be forward-looking statement. Please refer to our earnings release filed with the SEC today as an exhibit to our 8-K on our forward-looking statement disclaimer. In today's call, the terms we, us, and our refer to Acacia Research Corporation and it's wholly and majority-owned operating subsidiaries. All patent rights, acquisitions, development, licensing, and enforcement activities are conducted solely by certain of Acacia Research Corporation's fully and majority owned operating subsidiaries. I will now turn the call over to Clayton Haynes for the financial review.

Thank you, Rob, and thank you to those joining us for today's first quarter 2018 earnings conference call. Today, I will provide a summary of the first quarter 2018 results, and update of our current financial condition, and a recap of our 2018 expense outlook. As reported today, first quarter 2018 revenues increased to $62.1 million compared to $8.9 million of revenues in the comparable prior-year quarter. In the first quarter of 2018, one licensee individually accounted for 96% of revenues recognized. In the first quarter of 2017, two different licensees individually accounted for 73% and 12% of revenues recognized. For the first quarter of 2018, we reported a GAAP net loss of $32 million or $0.63 per share versus a GAAP net loss of $11.8 million or $0.24 per share for the comparable prior year quarter. On a non-GAAP basis, excluding general and administrative non-cash stock compensation and patent amortization charges, we reported a first quarter 2018 non-GAAP net loss of $26 million or $0.51 per share as compared to a non-GAAP net loss of $4.2 million or $0.08 per share for the first quarter of 2017. Excluding the impact of the change in fair value of our equity investment in Veritone, non-GAAP net income for the first quarter of 2018 was $15.1 million or $0.30 per diluted share. The GAAP and non-GAAP first quarter 2018 results included an unrealized investment loss totaling $41.1 million comprised of an unrealized loss related to the application of the fair value method of accounting to our equity investment in Veritone and the requirement to mark our Veritone investment to market each period. The unrealized loss resulted from the net decrease in Veritone's NASDAQ quoted stock price during the three months ended March 31, 2018. Please refer to our disclosures regarding the presentation…

Thank you, Clayton. Today I will provide brief updates for litigation activity in Acacia's CCE, Saint Lawrence, and Limestone subsidiaries. Overall since our last report on February 13, there have been limited changes to the pending cases we are reporting on today. Starting with CCE, trials for HTC and ZTE are still on track to begin on September 17, 2018. A second trial against the same two defendants is scheduled for February 2019. An important hearing for the upcoming September trial addressing multiple summary judgment motions from all parties will be heard on May 17th at the District Court in Texas. The results from the May 17th hearing will shape many of the disputed issues at the September trial. In addition the District Court in Texas listed a stay in a third set of cases against HTC and ZTE after the patent trial and Appeal Board upheld the validity of the primary patent in those cases. For our Saint Lawrence subsidiary, and following the resolution of the cases with Apple, we continue to press forward with our remaining cases against Motorola. In the U.S., we are still awaiting final ruling on post judgment motions filed with the Trial Court including Saint Lawrence's motion to recover its attorney fees. In Germany, we recently prevailed against the validity challenge to one of our primary patents which will allow us to continue the proceedings on that patent as we seek to recover infringement damages from Motorola. With respect to Limestone Memory Systems, and as we announced during our last earnings call, the cases are proceeding against defendants with four patents in suit. We are still at the early stages of this litigation with the Markman hearing date scheduled for fall of 2019 and the trial scheduled in early 2020. We will continue to update you on further developments in the cases just mentioned as well as significant litigation activity depending with other cases subsidiaries. Thank you and I'll turn the call back over to Rob.

Thank you, Clayton, and Ed. As Clayton mentioned, in Q1 of 2018, our team at Acacia generated licensing revenue of $62 million which ranks as one of the highest revenue generating quarters in the company's history. We are pleased with this results and our license success in the quarter. Acacia remains committed to investing in and monetizing our quality patent assets for the benefit of our shareholders and our IT partners. As stated during our previous earnings calls, our goal is not to manage the financial results for the company on a quarter-by-quarter basis, but rather to maximize the value of our assets and build long-term shareholder value. We want to remind shareholders that due to the nature of patent licensing, our revenues may vary significantly quarter-to-quarter. As many of you know several years ago our board and management team recognized developing headwinds in the IP license environment. It was important to address these challenges without jeopardizing our ability to continue to prosecute our IP and generate licensing revenue. The headwinds in patent licensing business have not subsided. Just last week, the Supreme Court ruled that IPRs are constitutional and they continue to be used to invalidate patents. IPRs or Inter Partes reviews can result in the loss of previously established patent rights or can lead to significant delays and infringement litigation. The continuing threat of IPR proceedings undoubtedly increases the cost, risk, and complexity of infringement action. The growing challenges in the IP licensing resulted in a strategic and focus response from our board and management to drive efficiencies in our IP business. Since early 2016, we have reduced our fixed G&A related expense run rate by over 50% and reduced our headcount by more than 70%. We have also reduced our legal costs both as a percentage of…