Good afternoon and thank you for participating in today's conference call. Now I will turn the call over to Chairman and CEO of Digimarc, Mr. Bruce Davis, Sr. Sir, please begin.

Thank you and good afternoon. Welcome to our conference call. Charles Beck, our CFO, is with me. On the call today we'll review Q1 financial results, discuss significant business developments and market conditions, and provide an update on execution of strategy. This webcast will be archived in the Investor Relations section of our website. Please note that during the course of this call, we'll be making certain forward-looking statements, including those regarding revenue recognition matters, results of operations, investments, initiatives, and growth strategies. These statements are subject to many assumptions, risks, uncertainties, and changes in circumstances. Any assumptions we share about future performance represent a point-in-time estimate. Actual results may vary materially from those expressed or implied by such statements. We expressly disclaim any obligation to revise or update any assumptions, projections, or other forward-looking statements to reflect events or circumstances that may arise after the date of this conference call. For more information about risk factors that may cause actual results to differ from expectations, please see the Company's filings with the SEC, including our latest Form 10-K. Charles will begin by commenting on our financial results. I'll then discuss significant business developments, market conditions and execution of strategy. Charles?

Thanks, Bruce, and good afternoon, everyone. Our Q1 financial results were in line with our expectations. Revenue for the quarter was $7.2 million, down $3 million or 30% from the first quarter of last year. Revenue was lower due to the scheduled completion of quarterly minimum license fee payments from Intellectual Ventures in May of last year. Excluding the impact of Intellectual Ventures, revenue was up $400,000 or 5%, primarily due to higher royalty revenue from other license fees and higher service revenue from the Central Banks. We recently received our annual profit participation report from Intellectual Ventures for 2013 licensing activities and no profit sharing was earned. Gross margin was 70% for the quarter, 9 points lower than the first quarter of 2013. The decrease in gross margin reflects the impact of lower license revenue. Operating expenses increased by 30% over the first quarter of last year reflecting the increased level of investment in our growth initiatives including development and marketing of the Digimarc Barcode, Digimarc Discover, and our Intuitive Computing platform as well as continuing development and marketing of our second wave patent portfolio. We incurred an operating loss of $3.3 million during the quarter versus operating income of $1.6 million in the first quarter of 2013. Our effective tax rate for the quarter was 40%, resulting in an income tax benefit of $1.3 million on a pretax loss of $3.3 million. At the bottom line, we incurred a net loss for the quarter of $2 million or $0.29 per diluted share versus net income of $1 million or $0.13 per diluted share in the same quarter last year. We spent $2.7 million of our cash reserves during the quarter on our growth initiatives. The balance sheet remains in excellent shape with over $32 million of cash and marketable securities and no debt. We expect this general level of cash consumption will continue through the remainder of the year unless we realize significant incremental revenue from Digimarc Discover, the Digimarc Barcode, and/or the second wave patent portfolio, or the pace of early adoption by retailers and brands is greater than anticipated. Later in this call, when discussing execution of strategy, Bruce will comment on the financial implications of our approach to development of the market for Digimarc Discover and Digimarc Barcode and our thoughts on the path to return to profitability. I'm pleased to note that the board has declared a quarterly cash dividend of $0.11 per share on the Company's common stock payable on May 12th to the stockholders of record as of the close of business on May 5th. For further discussion of our financial results and risks and prospects for our business, please see our Form 10-Q that we expect to file shortly. Bruce will now provide his comments on significant business developments, market conditions, and execution of strategy.

Thanks, Charles. We've been very focused on getting to the market with the Digimarc Barcode since its introduction in January. We've had follow-up meetings with most of the world's largest retailers since then. Planning is underway with a couple of excellent potential customers for market trials of the Digimarc Barcode and other elements of the Digimarc Discover platform. As most of you know, our recommended approach to retailers is to begin with enablement of their private label brands. Given that the retailers control these brands, they can begin to enjoy significant savings in the short term while advocating for adoption of the Digimarc Barcode by national brands to provide the full realizable savings. A leading research firm in the retail industry estimates that private label sales accounted for 18% of American consumer goods dollar sales in 2011. Our go to market scanning partner is Data Logic, the world's leading supplier of high volume scanning equipment for retail. Thus assuming that private label accounts for 15% to 20% of retail and recognizing that Data Logic is number one in worldwide points of sale retail scanners with approximately 33% market share, we have plenty of opportunity focused on enabling private label products of Data Logic customers. We intend to publish our quantitative model of labor cost savings for retailers within the next week or so. The published model will address only one aspect of the benefits of our platform, the labor cost savings made possible from fast throughput at checkout due to the Digimarc Barcode. We've developed a sophisticated and transparent model based on extensive search of available data and research concerning retail transaction processing. We are seeking public comment to harden the model and solicit inputs concerning clerical assumptions. The model is intended to help prospective customers calculate the return on…

(Operator Instructions). At this time there are no questions in the queue. I would now like to turn the call back to Mr. Davis for closing remarks.

Okay. Thank you, everyone, for participating in the call. We'll look forward to continuing our discussions with you and updating you again in our regular scheduled call next quarter. Thanks very much.

This concludes today's call. Thank you, ladies and gentlemen, for joining us today for our presentation. You may now disconnect.