Welcome to Elbit Systems’ Fourth Quarter and Full Year 2016 Results Conference Call. All participants are at present in listen-only mode. Following management’s formal presentation, instructions will be given for the question-and-answer session. As a reminder, this conference is being recorded. You should have all received by now the company’s press release. If you have not received it, please contact Elbit’s Investor Relations team at GK Investor and Public Relations at 1646-688-3559 or view it in the News section of the company’s website, www.elbitsystems.com. I would now like to hand the call over to Mr. Kenny Green of GK Investor Relations. Kenny, please go ahead.

Thank you. Thank you and good day to everybody. On behalf of all the investors I would like to thank Elbit Systems' management for hosting this call. Joining us on the call today are Mr. Bezhalel (Butzi) Machlis, Elbit’s President and CEO; and Mr. Yossi Gaspar, Elbit Systems' Chief Financial Officer. Yossi will begin by providing a discussion of the financial results of the fourth quarter and full year 2016 followed by Butzi who will talk about some of the significant events during the quarter and beyond. We will then turn the call over to the question-and-answer session. Before we begin, I would like to point out that the Safe Harbor statement in the company’s press release issued earlier today also refers to the content of this conference call. And with that, I would like to hand the call over to Yossi. Yossi, please go ahead.

Thank you, Kenny. Hello, everyone and thank you for joining us today. As we do every quarter, we will provide you with both our regular GAAP financial data as well as certain supplemental non-GAAP information. You can find all the detailed GAAP financial data as well as the non-GAAP information and the reconciliation in the today’s press release. Overall, we are pleased with our yearly performance in 2016 as well as in the final quarter in particular with the growth in revenues, margin improvements, strong cash flow as well as the continued positive trend in the backlog. I will now highlight and discuss some of the key figures and trends. Our fourth quarter 2016 revenues were $953.7 million, an increase of 8% compared with the $886.6 million reported in the fourth quarter of 2015. I note that our fourth quarter revenues like last year was the strongest of the year. For 2016 as a whole, our revenues were $3.26 billion versus $3.11 billion last year, representing a growth of approximately 5%. In terms of revenue breakdown across our areas of operation in the quarter, airborne system was 36%, C4ISR was 34%, armored vehicle systems was 16%, electro-optics was 10% and the rest was 4%. Compared with the fourth quarter of last year, the overall revenue mix from the areas of operation was similar with the slight increase in contribution from armored vehicle systems. In terms of geographic breakdown for the quarter, North America was 24% of revenues, Europe was 23%, Asia Pacific 22%, Israel was 21%, Latin America was 6%, and the rest of the world was 4%. Compared with the fourth quarter of last year, we saw increased contributions from Europe and Israel and the lower contribution from Latin America. Looking at 2016 as a whole, we saw increased…

Thank you, Yossi. We are pleased with our financial results for the quarter culminating a strong 2016. We continued to demonstrate strong growth in year-over-year revenue as well as a higher level of growth margin and the increase in operating and net profit for the quarter as well as for the year. Additionally, a good sign for the future is that our backlog has continued its long-term growth strength and ends the year at 5% ahead of last year, which is very similar to what we saw at the end of 2015. This backlog growth continues to provide us with strong revenue visibility over the long term. Today's geopolitical environment supports an increased demand for defense and homeland security solutions especially in Europe, Asia-Pacific and in the US. In fact, because of the increased opportunities in many of our end market, we made a decision to enhance resources devoted to capitalizing of many of these opportunities, both in the short term as well as in the future. An important achievement for Elbit Systems in 2016 was achieving benefit from some of our commercial ventures. In 2016, we saw capital gain of $17.6 million following a dilution event on two of our commercial ventures. One of which is in the automotive technology arena and the other is in a subsidiary focused on energy technology. I'd like to highlight some of our recent successes. Last month the United States Army awarded us an ID/IQ contract of up to $110 million for Mortar Fire Control Systems which consist of Mounted and Dismounted Mortar Fire Control Systems, and a lightweight handheld mortar ballistic computer. This system improves mission success with greater accuracy while reducing potential exposure. This award follows a similar award from the US army for $103 million for Mortar Weapon Systems in…

[Operator Instructions]

The first question is from [Yoav Burgan]. Please go ahead.

I am curious where the Elbit Systems factories are located and are there any plans to expand or develop new factories in the Nahf as the population shifts south and to also encourage Israelis to move into the Nahf and provide assistance with jobs at your factories.

We have facilities and factories all over our small country starting from the north from Nahariya down to Beersheba to Rehovat to Ashkelon and recently in Arad as well. We just few years ago we established an activity in Beersheba just near the university to support open innovation and to support our growing cyber activity. Yesterday, the Israeli Minister of Defense has announced that we were awarded $100 million contract to provide new communication equipment to the Israeli army. This equipment will be produced and will be maintained in our new factory in Arad in the South to support the growing demand for jobs in the south.

[Operator Instructions] There are no further questions at this time. Before I ask Mr. Kenny Green to go ahead with his closing statement, I'd like to remind participants that replay of this call will be available two hours after the conference ends. In the US please call 1-877-4560009. In Israel please call 03-925-5929. For international, please call 972-3925-5929. A replay of this call also be available on the company's website, www.elbitsystems.com. I see there is another question and a follow up from Yoav Burgan. Please go ahead.

Another aspect I was curious your expenses for R&D. What areas, products, and equipment are you looking into in terms of future development with your R&D expenses?

Actually our R&D is focused on all of our core technologies and core business products. We are focusing specifically on customer requirements, customer needs of the various configurations and technologies of all assistance. And distributing the various budget to support these activities including development of totally new products and new technologies that may come to the market several years in the future.

And with that I'd like to ask Mr. Machlis to go ahead with his concluding statement.

I'd like to thank all of our employees for the continued hard work. To everyone on the call, thank you for joining us today and for continued support and interest in our company. Have a good day and good bye.

Thank you. This concludes our Elbit Systems Limited Fourth Quarter 2016 Results Conference Call. Thank you for your participation. You may go ahead and disconnect.