Good morning and welcome to the Zoom Telephonics' Q1 2019 Shareholder Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] Thank you. I will now turn the call over to Frank Manning. Please go ahead, sir.

Welcome to the Zoom Telephonics conference call for Q1 2019. I’m Frank Manning, Zoom’s CEO. Our President Joe Wytanis will also be speaking and answering questions during this call. When you have time, please read slide 2 which cautions you that any of our forward-looking statements is subject to uncertainty and risks. Slide 3 provides a brief overview of Zoom Telephonics. I think most of you are familiar with the facts on this slide. Please note the recent increase in share count in connection with the $5 million strategic investment that we announced on Monday. Slide 4 provides a brief financial summary for our first quarter of 2019, “Q1 2019.” This was a difficult quarter due primarily to tariffs and to reduced shelf space at one retail chain, which I’ll detail shortly. Compared to Q1 2018, our gross profit declined $863 thousand in the quarter to $2.4 million, and our operating expenses increased $585 thousand to $3.5 million. A significant operating expense increase was the quarterly Motorola trademark licensing expense, which went up $250K to $1.125 million. Ad expenses rose $163K. It’s impossible to discuss the quarter without highlighting the impact of the tariffs, which we note on Slide 5. Our approach is to continue to push for tariff relief either through moving some production outside of China or through tariff-related filings in the US. One very recent development is that the US Trade Representative has committed to begin considering tariff exemptions for the third wave of tariffs, the one we’re in, by the end of this month. We are hoping that this occurs and that we can get an exemption due to the severe economic harm the tariffs are causing us. In summary, there’s a wide range of possibilities, from the worst case of 25% tariffs with no exemption,…

Thanks Frank. Slide 13 summarizes some of our near-term sales channel goals starting with increased Store Front Sales in Q2 2019. We’ve made excellent progress with a major retailer that will result in increased product placements this quarter. In the Service Provider channel, we are focusing our initial attention on Tier 2 and 3 cable operators in the USA, Canada, and Latin America. To reach these operators, we are forming relationships with key distribution partners and industry organizations. We’re excited about the Motorola Cellular MultiSensor we began shipping at the end of March and the downstream recurring revenue it will provide. It is our full intention to build added features and functionality into our future cable modem/router, WiFi mesh router/controllers/extenders, and other router products. This includes unique network, security, and cloud capabilities that will offer us differentiation in the marketplace. I will discuss this more on the next slide, but certainly a key point is the downstream recurring revenue this will create. As just mentioned, we fully intend to expand our sales presence into international markets, starting with the adjacent markets of Canada and Mexico. As I alluded to on the previous slide, Slide 14 speaks to the exciting prospect of Zoom teaming up with Minim, whose CEO Jeremy Hitchcock just invested $4.1 million in our company through his family fund. Having Jeremy on our Board, and his company Minim working with us in close partnership, will create tremendous possibilities for Zoom. At a very high level, it will allow users of our Motorola products to easily manage their wireless home network from a Motorola application they download. The application will give end users access to parental controls, manage WiFi settings, create usage limits, and much more. But that’s not all, it will allow our Motorola Customer Tech Support team…

Thank you. [Operator Instructions] And your first question is from Spencer Lehman.

Good morning. Hey, congratulations, Frank and Joe, for exciting new partnership. I think the news is really exciting. And do you see your IR Company getting a story out now to the financial markets in the near future?

Thanks. Spencer. Yes. We've already started to do that. And I think we'll -- we're expecting to significantly increase our meetings with investors in our general investor outreach.

Okay. Thank you.

Your next question is from Walter Young.

Hi. My question is about the competitive products. In specific, Smith Micro has a product called SafePath. And I wondered if that and other products for this industry or this area that -- for WiFi parental controls and managing your home, do you have the pricing competition landscape? Any comments there would help me.

Hi, Walter. It's interesting to hear, you mentioned Smith Micro because we know there's nothing we can do. We have started doing business with Smith Micro in fact, probably back in 1980s. But to answer your question, I don't know the specific product you mentioned, but the key thing I would mention is that the router is so central and it's such a great advantage that we have that a regular software provider doesn't have. So, if you think about it, the data, all goes through that cable modem or other internet access device and the router and so it's central to the story. And we think that, that central spot gives us unique advantage over other approaches like in many cases software. So again, I can't really comment on Smith's product. They do good work. So it's probably a good product, but I really like the strategic position our router products have.

Okay. Thank you.

[Operator Instructions] And we have no further questions at this time.

Okay. Well, thanks for joining the call. It's always nice to get to communicate with you and I'll look forward to speaking with you in the future.

Thank you very much.

Thank you. This does conclude today's conference call. You may now disconnect.