Good day and welcome to the Astro-Med's Q2 Fiscal Year 2015 Conference Call. Today's call is being recorded. At this time, I would like to turn the conference over to Mr. David Calusdian. Please go ahead.

Thank you, and good morning, everyone. Hosting today's call are Astro-Med's Chief Executive Officer, Greg Woods; and Chief Financial Officer, Joe O'Connell. Greg will begin today's call by reviewing the company's operating highlights and business outlook. Joe will then take you through the financials. Greg will make some closing comments and then, management will be happy to take your questions. By now, you should have received a copy of the news release, which was issued earlier today. If you have not received a copy, please go to the Investor section of the company's website, Astro-MedInc.com. Before we begin, please note that statements during this call that are not statements of historical facts are considered forward-looking statements within the meaning of the Securities and Exchange Act of 1934. These forward-looking statements are based on a number of assumptions that could involve risks and uncertainties. Accordingly, actual results could differ materially. Such forward-looking statements speak only as of the date made. Except as required by law, the company undertakes no obligation to update these forward-looking statements. For further information regarding the forward-looking statements and the factors that may cause differences, please see the company's risk factors in the company's annual report on Form 10-K and other filings Astro-Med makes with the Securities and Exchange Commission. With that, I'll turn the call over to Greg Woods.

Thank you, David, and welcome to our second quarter fiscal 2015 conference call. As you have seen in our release earlier today, we continued our excellent growth momentum in fiscal 2015 with a strong second quarter performance. We reported record quarterly revenues of $22.4 million, representing more than a 30% increase over the prior year with both segments of our business also reporting record sales. The increased revenue combined with a favorable product mix and the impact of some of our operational improvements resulted in net income for the quarter of $1.4 million or $0.18 per diluted share, representing a year-over-year improvement of over 100%. Orders received in the second quarter came in at $21.2 million, more than 16% higher than last year's second quarter. We finished the quarter with a strong backlog of $14.7 million, up 4.6% from year end. Q2 was another quarter of double-digit organic growth for Astro-Med and strong demand from both our QuickLabel Systems and Test & Measurement segments. Our QuickLabel Systems segment grew 25.1%, aided by the continued strength of the Kiaro! Series of color label printers. I should note that we're also starting to see a nice trend whereby our existing QLS customers are increasing the quantity of labels they are printing as they gain experience with our printers, which helps drive the growth of our consumables business. Due is the flexibility of the Kiaro! Series, customers can easily print labels to fit a broader range of products, making increased customization cost effective. By printing a wider variety of labels, much less expensively in-house, our customers are able to quickly penetrate new markets and grow their businesses. For large label applications, our new wide format Kiaro! 200 printer continues to generate excellent response from customers and we're impressed by the quality and performance…

Thank you, Greg. Good morning, everyone. I am very delighted to share with you Astro-Med's second quarter fiscal 2015 financial results. As Greg mentioned, net sales in the quarter were $22.4 million. This is an increase of 30.1% from the second quarter of last year. Sales to our domestic customers increased 25.7% from the prior year to $15.2 million, while our shipments to our international customers grew 40.4% year-over-year to $7.2 million. Turning to the business segments; the company's QuickLabel Systems product group with monochrome and color printer systems reported sales of $15.3 million, marking yet another new record in quarterly revenue and exceeded the prior year's second quarter by 25.1%. Our Test & Measurement product group of ruggedized products and data acquisition systems also posted a record quarter in sales of $7.1 million, representing a 42.2% increase from the year earlier. International shipments accounted for 32% of Astro-Med's second quarter revenue and again represents a record level of quarterly sales. Profiling the second quarter by product, consumables were $10.9 million, that's up 18.7% from the second quarter of fiscal 2014, while our hardware sales increased 40% from a year ago to $9.9 million. Our service parts and repairs revenues contributed another $1.5 million in quarterly sales, and were up 67% from the prior year second quarter. Second quarter sales generated $9.6 million in gross profit dollars, up 38.5% from the prior year. Our gross profit margins at 42.9% compare favorably with the 40.3% in the second quarter of 2014. The increase in gross margin from a year ago was primarily attributable to the higher revenue, the improved product mix and the ongoing success of Astro-Med's lean manufacturing initiatives. Our operating expenses totaled $7.4 million in the quarter, or 33.2% of our net sales, that's down a 190 basis points…

Thank you, Joe. In closing, we continue to build momentum in executing on our growth strategy as we enter into the second half of fiscal 2015. We are focusing on growing our top line both organically and through strategy add-on acquisitions. On the organic side, we are expanding our distribution channels, we’re investing in R&D and we are launching innovative new products. We also plan to grow through acquisitions by identifying complementary companies that enable us to expand the breadth of our products and our markets. Looking at the bottom line our lean transformation is going well and we are starting to see the results of our operational expense efforts in our financial performance. We have new leadership in this area and plan to make even more progress in the second half of the year. Finally turning to guidance, for fiscal 2015, based on the positive results of the first half we feel that we are well positioned to meet or exceed the upper end of our revenue guidance of $80 million to $85 million and our net earnings guidance of $0.55 to $0.60 per share. With a strong balance sheet and a healthy backlog, we believe that we are well-positioned for the future. We will continue to execute on our growth strategy and focus on increasing shareholder value. With that, Joe and I will be happy to take your questions.

(Operator instructions) We'll take our first question now.

Hi, this is Joe Furst from Furst Associates.

Hi Joe.

My question had to do with the backlog on the ruggedized printer area for the airplanes. I know you had multiyear orders. I want to -- are they starting to kick in because they've been around for quite a while. Are they starting to kick in on a greater basis?

Yes this is Greg speaking. Hi Joe. Yeah. We are starting to see that in a variety of both the Miltope acquisition that we brought on board, but also our existing backlogs. Of course we brought the Miltope backlog as well. So we’re starting to see that and that’s obviously evidenced in the growth in that area. Those orders take typically quite a while to generate and you're starting to see those ramp up now.

All right, and I know you don’t cut down on backlog, but in the past you’ve mentioned about the number of potential orders that you have I guess I don’t know how you categorize it, but at one point it was like $40 million or something like that. Is it still in that -- kind of, in that range?

No, no, it’s up over $100 million.

That’s up $100 million?

Yeah.

Good, and congratulation on the good work here. You're doing a good job at getting this company more profitable and that’s what we needed to do. Thank you.

You’re welcome. Thanks.

(Operator instructions) We'll take our next question from Daniel Nall of Aristides Capital.

Yeah. Good morning. This is actually Chris Brown on for Daniel. I was just curious that if you could tell us basically what percentage of your revenue roughly would you say comes from recurring sources of revenue, for example printer supplies that sort of thing.

It's generally -- Chris, it's about 50% of the total revenues that we realized.

Okay. Great, and then if you look at your backlog number, is the backlog, does that trend towards more nonrecurring revenue sorts of products or is 50% of that of the recurring nature as well?

Yeah, it’s pretty close. It’s a blend Chris. It’s got some consumables in it, but also has some hardware orders in there as well.

Okay. Great. Thank you very much.

Sure.

And we have a follow-up question from Joe Furst of Furst Associates.

As far on acquisition front, do you have anything that is more than just looking right now or anything that's potentially in the works that could close in the next six months or so?

Yeah. We have of course a number of things in the works, but there is nothing that we can comment on. We don’t comment on the acquisition until we’re ready to make an announcement, but yes, there are several. We aren’t just looking at names. We’re actually talking with people about ongoing negotiations.

Good. That’s what I was getting at. Thank you.

Sure.

And we have no further questions at this time.

Okay. With that I thank you all for joining us here today. We look forward to speaking with you on our next call and have a good day. Bye now.

Bye now.

And that concludes today’s call. Thank you for your participation.