Devin Sullivan - Senior Vice President of the Equity Group Vincent Arnone - President and Chief Executive Officer David Collins - President and Chief Executive Officer

Greetings, and welcome to the Fuel Tech Inc. Reports 2016 Third Quarter Financial Results Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host Devin Sullivan, Senior Vice President of the Equity Group. Thank you Mr. Sullivan, you may begin.

Thank you Bob. Good morning, everyone, and thank you for joining us for Fuel Tech’s 2016 third quarter financial results conference call. Yesterday after the close, we issued a copy of the release, which is available on our website www.ftek.com. The speakers on today’s call will be Vince Arnone, President and Chief Executive Officer; and Dave Collins, Senior Vice President and Chief Financial Officer. After prepared remarks, we will open the call for questions from our analysts and investors. Before turning things over to Vince, I would like to remind everyone that matters discussed on this call, except for historical information are forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in forward-looking statements. The factors that could cause results to differ materially are included in our filings with the SEC. The information contained in this call is accurate only as of the date discussed, and investors should not assume that statements made during the call remain operative at a later date. Fuel Tech undertakes no obligation to update any information discussed during this call. And as a reminder, the call is being broadcast over the Internet and can be accessed at the company's website www.ftek.com. With that said, I would now like to turn the call over to Vince Arnone, President and CEO of Fuel Tech. Vince, please go ahead.

Thank you, Devin. Good morning and thank you everyone for joining us on the call today. Many of the same scenes that have lingered over our core businesses during 2015 and the first half of 2016 have continued into the third quarter and will likely persist for at least a balance of this year. Our results for the third quarter including revenues are 12.6 million, a drop from 21.7 million in last year's third quarter, predominantly due to the timing of revenue recognition on air pollution control contracts. In the U.S. this generated nearly 80% of our Q3 revenues, demand for coal and overall energy use are both down and regulatory initiatives that could potentially accelerate APC sales remained delayed. In spite of these headwinds, our company has continued to focus on three fundamental initiatives during this period in order to reposition ourselves for the future. First, in order to ensure that we continue to advance towards generating positive cash flow. We have aligned our organizational infrastructure and related costs with the revenue generating capability of our base business segments those being air pollution control and Fuel Chem. As noted in our earnings press release, we recorded a charge of 1.1 million in the third quarter related to our organizational changes and I’ll talk more about our SG&A balance in a few minutes. Second, continue to enhance a revenue generation capability of our base business segment via partnership opportunities where we bring Fuel Tech’s existing suite of products and technologies to market to partner sales channels or we bring a partner's products and technologies to market through Fuel Tech existing sales channels. As a further example of this initiative in a press release we issued yesterday, we announced the signing of an exclusive agreement under which Fuel Tech has licensed…

Thanks Vince and good morning, everyone, we remain focused on cash management and are watching our balance sheet movements and working capital closely as we continue to execute on business strategies that Vince outlined. At the end of September, our balance sheet remains strong with cash of 19.3 million, working capital of 32.5 million and we remain debt free. Consolidated revenues for the nine-months end September 30, totaled 45.6 million down 9.9 million from 55.5 million in prior year and our third quarter of 12.6 million was down 9.1 million from 21.7 million in the prior year quarter. The decreases for both our nine-months and current quarter period to reflect decreases in both APC and FUEL CHEM revenues, resulting from a general declining coal-fired power generation, these declines has been noted in both foreign and US domestic business. Our gross margin percentage for the nine-month period was down slightly to 37% from 39% in the prior year, for the current quarter our gross margin percentage was 42% representing an increase of 6% from the prior year. This increase was due to a higher percentage of FUEL CHEM segment business versus APC segment business in the current quarter. Our selling, general and administrative expense for the nine-month period totaled $19.7 million, down $3.8 million from the prior year. For the current quarter, our SG&A expense totaled $5.8 million, down $1.3 million from the comparable prior year period. During the current quarter w did recognized just over 1 million in restructuring charges, primarily represents personal related severance expense. As Vince discussed, we're continuing to evaluate our cost structure and have taken a number of measures to reduce our spending, including a recent headcount reduction in July, which will deliver annualize cost reductions of more than 5 million. We continue to evaluate and…

Thank you Dave. With that operator let's please open the call for questions.

Thank you operator, I would like to thank everyone that had the opportunity to join us on the call today. Obviously, it's a busy morning for our country, but in any event I would like to thank everyone for their interest in Fuel Tech and we appreciate your support. Thank you very much.