Welcome to inTEST Corporation’s 2016 Second Quarter Financial Results Conference Call. At this time, all participants are in listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference call is being recorded today. A replay will be accessible at www.inTEST.com. It is now my pleasure to turn the call over to inTEST’s Investor Relations, Laura Guerrant. Please go ahead.

Thank you, operator, and thank you for joining us for inTEST’s 2016 second quarter financial results conference call. With us today are Robert Matthiessen, President and CEO; Hugh Regan, Treasurer and Chief Financial Officer; and Jim Pelrin, Executive Vice President. Mr. Matthiessen will briefly review highlights from the second quarter as well as current business trends. Mr. Regan will then review inTEST’s detailed financial results and discuss guidance for the third quarter. We’ll then have time for any questions. If you’ve not yet received a copy of today’s release, a copy may be obtained on inTEST’s website, www.inTEST.com. Before we begin the formal remarks, the Company’s attorney’s advice that this conference call may contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements do not convey historical information, but relate to predicted or potential future events that are based upon management’s current expectations. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to, our ability to implement and execute the 2015 repurchase plan, changes in business conditions in the economy, changes in the demand for semiconductors, changes in the rates of and timing of capital expenditures by semiconductor manufacturers, the success of our strategy to diversify our business by entering markets outside the semiconductor or ATE markets, progress of product development programs, increases in raw material and fabrication costs associated with our products and other risk factors set forth from time-to-time in the Company’s SEC filings, including, but not limited to inTEST’s periodic reports on Form 10-K and Form 10-Q. The Company undertakes no obligation to update the information on today’s conference call to reflect events or circumstances after the date hereof or to reflect the occurrence of anticipated or unanticipated events. And with that, let me now turn the call over to Bob Matthiessen. Please go ahead, Bob.

Thank you, Laura. Welcome everyone to our 2016 second quarter conference call. I’ll review some of the highlights, our markets and what we are seeing in our customer base and then Hugh will review the financial results in detail. We again reported strong financial results. Second quarter revenue growth was fueled across all of our product lines, driven most notably the automotive sector of the semiconductor market coupled with demand created by next generation smartphones and gross margin and net income also increased substantially over the last quarter with gross margin exceeding our guidance range. In our Thermal Products segment, order expansion continued throughout the quarter as well, increasing 28% sequentially, based upon strength from our Thermal Products segment, our largest and most profitable division. We have strategically diversified this segment resulting in new opportunities in industrial testing and broadening our end market penetration into applications in various growth markets including automotive, consumer electronics, military/aerospace, energy, industrial and telecommunications. In addition, new product offerings have opened industrial markets outside inTEST for both OEM and end user applications. Thermal Products segment bookings for the second quarter were $8.2 million, a 60% increase compared with the $5.1 million for the first quarter. Q2 thermal segment revenues were $5.6 million, up 8% compared with the first quarter's revenues of $5.2 million. Business was very strong in both the North American and Asian Markets. The upsurge in optical transceiver business in Asia continued throughout the quarter, as did orders from major semiconductor companies. Both semiconductor and military/aero markets provide an increased business in North America over the previous quarter. Thermal highlights for the quarter included a major telecom company that purchased 9 ThermoSpot systems, which is a new product; a major military/aerospace organization purchased 9 systems for expansion of an automated test cell; and…

Thanks, Bob. Second quarter 2016 end-user net revenues were $9.7 million, or 93% of net revenues, compared to $8.2 million, or 94% of net revenues in the first quarter. OEM net revenues were $770,000, or 7% of net revenues, up from $493,000, or 6% for the first quarter. Net revenues from markets outside of semiconductor tests were $2.5 million, or 24% of net revenues, compared with $2.6 million, or 30% of net revenues in the first quarter. The Company’s second quarter gross margin was $5.3 million, or 51% as compared with $4.1 million, or 47% in the first quarter. The improvement in the gross margin was primarily the result of both a decline in our fixed manufacturing costs as well as a more favorable absorption of these manufacturing costs. Our fixed manufacturing cost declined by $95,000, or 7% sequentially, due to reduced salary and benefit costs as well as lower levels of facility related costs. This reduction accounted for approximately 25% of the gross margin improvement. The balance of the Q2 2016 gross margin improvement was the result of better absorption of our fixed manufacturing costs due to the sequential growth in revenues with our fixed manufacturing costs reducing from 16% of revenues in Q1 to 12% in Q2. Partially offsetting this decrease was a slight increase in our consolidated component material costs, which grew from 33.8% in the first quarter to 34.6% in the second quarter. The increase in our consolidated component material costs was the result of an increase in our component material cost in our Thermal and Electrical Products segments. Our Thermal Products segments component material cost increased from 30% in the first quarter to 32.4% in second quarter, while our Electrical Products segment saw its component material costs increased from 33.2% to 36.8% sequentially. These increases…

At this time, we have no questions. I’ll now turn the floor back over to Mr. Robert Matthiessen for any additional or closing remarks.

Thank you for your interest in inTEST and we look forward to updating you on our progress when we report our third quarter results in November. Have a good evening.

Thank you all for joining.

Thank you for your participation in today's conference. This does conclude today's call. You may now disconnect.