Good day, ladies and gentlemen and welcome to the BioLife Solutions Q1 2015 Earnings Conference Call. At this time all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instruction]. As a reminder this conference call is being recorded. I would now like to introduce your host for today’s conference, BioLife Solutions' Chief Financial Officer, Daphne Taylor. Ms. Taylor you may begin.

Thank you, operator and good afternoon everyone. Thank you for joining us this afternoon for the BioLife Solutions conference call and webcast. During this call we will discuss our financial results and operational highlights for the first quarter of 2015. Today we issued a press release and filed our Form 10-Q quarterly report containing detailed results for the quarter. This release is available on the Investor Relations page of our website at biolifesolutions.com as well as various financial websites. As a reminder this call is being recorded and also broadcast live on our website. A replay of the webcast will be available through the same link for 90 days. Before we get started, let me remind you that during the course of this conference call, we will make projections and other forward-looking statements regarding future events or the future financial performance of the company. These statements are subject to many risks and uncertainties that could cause actual results to differ materially from expectations or detailed discussion of the risks and uncertainties that affect the company’s business and that qualify to be forward-looking statements made on this call, I refer you to our periodic and other public filings with the SEC. Company projections and forward-looking statements are based on factors that are subject to change and therefore these statements speak only as of the date they are given. The company assumes no obligation to update any projections or forward-looking statements except as required by law. Now I would like to turn the call over to Mike Rice, President and CEO of BioLife.

Thank you Daphne and thanks everyone for joining the call. Following our business update we'll be glad to take your questions. I want to start off with a recap for the regenerative medicine market and our place in the supply chain as a critical tools provider and I’ll share some data to help you understand why this is a very strategic market for BioLife. The regen medicine industry is comprised of clinical centers and private and public companies, commercializing cellular and gene therapies and engineered tissue products, intended to treat, and in some cases cure the leading causes of disability and death throughout the world. Yesterday the Alliance for Regenerative Medicine or ARM as the entity is known published their quarterly data report for the first quarter of 2015. According to ARM there are 580 regenerative medicine companies worldwide and investor interest in this space is very strong. In the first quarter of 2015, ARM reports that total amount of funds raised by these companies was $2.7 billion, an increase of 135% from the same quarter last year. A major focus of regenerative medicine clinical trials is the use of cellular immunotherapies, such as CAR-T cells and other types of T cells in various cancer indications. This is great news for patients and also for BioLife, as many of our customers are in the cell immunotherapy space and they have raised significant amounts of cash to support the clinical trials or our products are used to preserve starting biologic material such as peripheral blood or bone marrow and also the manufactured cell products that are administered to patients. I encourage you to read this report which can be found on the ARM website at alliancerm.org. Regenerative medicine represents the most strategic market segment for our proprietary clinical grade bio-preservation media…

Thanks Mike. First quarter 2015 revenue was $1.5 million, up 30% from the first quarter of last year. Nearly all of Q1 revenue was realized from sales of our core proprietary bio-preservation media products. This was the strongest quarter in company history for core product revenue and for the full year of 2015, we expect 20% to 30% growth in core product revenue over 2014. Gross margin in Q1 was 59%. This is up from last year when our product mix included a significant amount of lower margin contract manufacturing revenue. For the full year of 2015 we expect gross margin to be in the range of 55% to 60%. Operating expenses in Q1 of 2015 were $2 million. These were in line with Q4. The increase in expenses over Q1 of last year is due to investments in headcount and spending related to the development and commercialization of our Biologistex Cold Chain management service that Mike just referred to. We expect G&A and R&D expenses both to continue at about the same pace for the rest of the year but the ramped down of G&A as we complete the JV participation payments with SAVSU by the end of Q4. We also expect sales and marketing expenses to increase in Q2 and then to level out later this year after the full launch of our Biologistex service. In Q1 of 2015, we used $1.3 million in cash. We ended the quarter with $8.6 million. We planned to use about half of our current cash in the next three quarters commercializing our Biologistex service and expect to end the year with approximately $4 million in cash. Furthermore, we expect that we will have sufficient cash to reach positive cash flow and we did not expect to need to raise additional operating cash in 2015 or 2016. And with that, I will turn the call back over to Mike.

Thanks again Daphne. I’d like to close with some summary comments about where we are and how we see our future potential. This is a really exciting time at BioLife. Our entire team is focused and totally engaged on continuing to build our brand and customer base in our strategic markets. The new team members we hire to support Biologistex bring excellent domain knowledge of our Cold Chain management and opportunities for even more innovation. I believe strongly that just as we were successful moving the regen med market away from home brewed and other poor performing preservation media, we can repeat this high value customer engagement and consulting experience by exposing risks and Cold Chain management practices and driving adoption of our cloud-based Biologistex app and the EVO smart container. Ultimately, my vision for BioLife and our tools offering is that both will be catalysts for real improvements in biologic based medicine. We take our role as a critical tool supplier very seriously and believe customers, patients, shareholders and our team members will all benefit from the work we do. Thank you for interest in BioLife. I look forward to reporting on our progress during future calls. Now we’ll open the call to questions. Operator?

Thank you. [Operator Instructions]. Our first question comes from Jeffrey Cohen.

Hey, Mike and Daphne, can you hear me okay?

Yeah. Hi Jeff.

Hi, Jeff. How are you doing?

I am doing just fine. So just a few questions. Can you talk about, Daphne I guess the R&D for the balance of ’15, can you talk about the number for Q1 and how that may look for the next three quarters particularly in light of the news from Somahlution?

Sure. Well R&D first of all doesn’t have Somahlution expenses in it. So the $322,000 that we had in Q1 we’re thinking that the rest of the year going to be about in that same neighborhood.

Okay, about the same. And could you talk about, Mike of those 80 Phase IIs and 20 Phase IIIs how many do you expect to read out during 2015?

None.

None, none of the IIs either?

Pardon me?

None of the Phase IIs or IIIs?

Did you say read out Jeff, sorry, you broke up a little bit. Did you say read out?

Yes. Do you expect any data in the marketplace?

Yes, I think a small handful, Jeff, I think so. And then clearly as we get into Q4 this year in the first couple of quarters of next year, particularly in cell immunotherapy we should be seeing some data readouts from some key customers.

Okay, got it. And Daphne you said gross margins in the neighborhood of 55% to 60% for the balance of 2015?

Yes. That’s right.

Okay, and could you talk just from a 30,000 foot standpoint as far as what do you expect -- there is no guidance for that, you previously talked about a top line growth rate?

Yes, well, we reiterated our expectation for proprietary revenue growth of 20% to 30% over the last year.

Okay. So that…

We haven’t given any guidance on the Biologistex yet.

Okay. But 20% to 30% still holds?

Yes.

Okay, and the EVO smart shipping market do you expect to be -- out in the marketplace selling this year in 2015?

Definitely Jeff. Definitely.

Okay.

We are very excited about it.

Not second quarter or third quarter?

Well, as we mentioned just a few minutes ago, we expect to report some revenue from that service line in the third quarter.

Third quarter. Perfect. Okay, I got it. Thanks very much for taking the questions.

Very welcome. Yes.

Thank you. [Operator Instructions]. And I am not showing any more questions at this time.

All right. This is Mike. Thank you everyone for joining us on today’s call. Good evening.

Ladies and gentlemen, thank you for participating in today’s conference. This does conclude today’s program. You may all disconnect. Everyone have a great day.