Welcome to the Q3 Identive Group Incorporated Earnings Conference Call. My name is Joe and I will be your operator for today’s call. At this time, all participants are in a listen-only mode and later we will conduct a question-and-answer session. Please note that this conference is being recorded. I will now turn the call over to Ms. Darby Dye. Ms. Dye, you may begin.

Thank you. Hello, everyone and thank you for joining us. With me on the call today are Jason Hart, CEO of Identive and David Wear, our CFO. In a moment, we will hear remarks from both of them and then we will take questions. Before we begin, please note that during this call, we will also be making reference to non-GAAP results or projections including non-GAAP gross margin, operating expenses, adjusted EBITDA and earnings per share. A complete reconciliation between each of these non-GAAP measures and the most directly comparable GAAP financial measure is included in today’s press release which is available on our website. In addition, during our call today, we will be making forward-looking statements. Any statement that refers to expectations, projections or other characterizations of future events including financial projections and future market conditions is a forward-looking statement. Actual results may differ materially from those expressed in these forward-looking statements. For more information, please refer to the risk factors discussed in the documents we filed from time-to-time with the SEC, including our annual report on Form 10-K for fiscal 2012 and our subsequent quarterly reports on Form 10-Q. Identive assumes no obligation to update these forward-looking statements which speak as of today. Now, it is my pleasure to turn the call over to Jason Hart.

Simplification, focus and growth, thank you, Darby. Thanks everyone for joining us today. I understand for our European colleagues it’s a little late. I wanted to take a few minutes to share with you all the broad strategy that we have embarked on some eight weeks ago. We believe that the business has substantially undervalued. We fundamentally believe that there is a great opportunity to create a long-term platform for value, not just for our shareholders but for our customers and staff. During Q3/Q4, the management team have focused very much on this principle of simplification. We look to create value through dramatic change to the company and I am going to highlight some of that in a few minutes. I am also going to talk a little bit about the focus for the business as we move forward, but for right now, I would like to cover something that I found really quite interesting as a backdrop to the simplification plan. In a few short weeks, we have been able to make some dramatic changes to the long-term operating expenses of business. We saw some really good results in September, a positive operating financial performance in Q3 overall. We saw strong demand for some of our segment products, particularly in the areas, in high growth areas, such as our cloud identity security products. And in the lot of our new electronic toy NFC, RFID products, particularly with some strong contracts from at least one gaming company. We saw our Q4 backlog and receivables at almost 40% of our annual revenue. For me, this is quite impressive, because when I look at the business, I look at the foundations of what we have is rare in my opinion to see a business with such strong backlog and receivables, particularly given…

Thank you, Jason. As noted by Darby, today we are discussing our third quarter non-GAAP results for which we provide further details and reconciliations in our earnings press release. During the third quarter of 2013 total revenues were $26.3 million, up 11% from $23.6 million reported in the second quarter and up 14% from $22.9 million reported in the same quarter last year. Revenues from identity management were $12.3 million, up 17% from $10.6 million in the previous quarter, but down 11% from $13.8 million reported in the same quarter last year. Although revenue from access control and security systems decreased 12% year-over-year as a result of the U.S. federal government spending sequester, they improved substantially on the previous quarter. Seasonal government spending anticipation of the October fiscal year end as well as from increased shipments of our new HIRSCH Mx Controller to commercial customers were the contributing factors. Revenues from ID product segment were $13.9 million, up 7% from $13 million in the previous quarter and up 53% from $9.1 million in the same quarter last year. This growth was primarily driven by strong revenues from both RFID and NFC product sales, which increased 131% year-over-year. Revenues from readers and associated card sales also grew by 10% both sequentially and year-over-year. As Jason mentioned, we are entering the fourth quarter with a strong backlog which includes $20 million of orders for delivery over the next 12 months and a further $7 million in longer term contracts. Our backlog reflects stronger – continued strong market demand for our RFID and NFC products as well as growing demand for our credential and reader products. Also included in the backlog is approximately $7 million of orders related to businesses being reviewed for divestment. Some commentary on our operating highlights. Non-GAAP gross profit…

Thank you. We will now begin the question-and-answer session. (Operator Instructions) And at this time I am showing no questions. Jason do you have final remarks.

I do. Thanks Joe. And again I wanted to thank everyone for taking the time out. Just to summarize, we have really taken a very proactive view to simplify, to focus and then to grow and we are concentrating the business as we do that in the high growth security and identification markets. I think our investors will ultimately see the reward from that focus. And I look forward to speaking with many of you over the course of Q1 as we talk more about our strategy forward. So with that I want to thank everyone for their participation.

And thank you. Ladies and gentlemen, this concludes today’s conference. Thank you for your participation. And you may now disconnect.