Greetings and welcome to the Natural Health Trends Corporation First Quarter 2018 Earnings Conference 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. I would now like to turn the conference over to your host, Kimberly Orlando of ADDO Investor Relations. Thank you. You may begin.

Thank you and welcome to Natural Health Trends first quarter 2018 conference call. During today’s call, there may be statements made relating to the future results of the Company that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results, performance, or achievements could differ materially from those anticipated in such forward-looking statements due to result of certain factors, including those set forth in the Company’s filings with the Securities and Exchange Commission. It should also be noted that today’s call will be webcast live and can be found on the Investors section of the Company’s corporate website at naturalhealthtrendscorp.com. Instructions can be found for accessing the archived version of the conference call in today’s financial results press release, which is issued at approximately 9 o'clock AM Eastern Time. At this time, I would like to turn the call over to Chris Sharng, President of Natural Health Trends.

Thank you, Kim, and thanks to everyone for joining us. With me today is Scott Davidson, our Senior Vice President and Chief Financial Officer. Our momentum in the back half of 2017 carry into the first quarter with total revenue of $52.4 million increasing 14% compared to the fourth quarter of 2017 and decreasing 13% year-over-year. Importantly, the first quarter of 2018 marked our second consecutive quarter of sales growth since the second quarter of 2016. Our improved topline performance versus the prior quarter is a direct result of the substantial advancements we made during the prior two quarters to revitalize our sales. Specifically, we believed that the enhancements made to our commission plan to better incentivize up and comers and ease rank advancements along with our effective marketing programs drove the sequential sales growth. As previously discussed, we began implementing additional enhancements to help direct more resources to lower and mid-level rank members including a one-time cash bonus for new participants in the International Recognition Program. In January we held our international Ambassador Academy in Hong Kong, attended by over 5,500 people. This year the orders generated by promotions directly related to the event exceeded those of the last three years. As part of the occasion we introduced our new product CurcuMore producing nearly $600,000 in orders during the quarter, as well as announced various new and exciting programs for the year ahead, which I will discuss in a moment. Our revenue for the quarter improved despite the Chinese New Year and the holiday related customs shutdown in mid-February. In anticipation of the closure we did as much as we could to prepare by working directly with our leaders to appreciate products and were therefore able to mitigate some, but not all of this logistic challenge. Our gross profit…

Thank you, Chris. Total revenue for the first quarter was $52.4 million a 13% decrease compared to $59.9 million in the first quarter of 2017 and a 14% increase compared to $46.1 million in the fourth quarter of 2017. Sales in Hong Kong which accounted for 91% of our first quarter revenue decreased 13% year-over-year to $47.6 million. Outside of Hong Kong revenue decreased 11% year-over-year to $4.7 million. Our active member base declined slightly to 95,000 at March 31 from 95,700 at December 31 and from 114,000 at March 31 last year. Turning to our cost and operating expenses, our gross profit margin for the first quarter remained strong at 80.5%. The prior year margin of 81.2% was higher due to greater event ticket revenue. Commissions expense as a percent of total revenue increased to 43.9% from 43.4% in the first quarter last year and is in the line with the full-year 2017 rate. Selling, general and administrative expenses for the quarter decreased 6% to $9.1 million versus $9.7 million a year ago. As a result, operating income for the quarter totaled $10 million a decrease of 23% compared to $13 million in the first quarter of last year. Our operating income margin was 19.2% compared to 21.7% in the first quarter of last year. Our effective tax rate was 14% for the first quarter compared to 21% in the prior year period due to the enactment of the Tax Cuts and Jobs Act. Net income for the first quarter totaled $8.8 million or $0.78 per diluted share compared to net income of $10.4 million or $0.93 per diluted share in the first quarter of 2017. We generated a $11.1 million in cash provided by operations during the quarter compared to $13.8 million in the prior quarter. Total cash and cash equivalent of $145.1 million as of March 31 were up from $135.3 million at December 31. We used our available cash to pay out $1.5 million in dividends during the quarter. On April 17, 2018 our Board of Directors declared a quarterly cash dividend of $0.14 per share representing an 8% increase over the prior quarter dividend as well as a special cash dividend of $12 million or $1.76 per share both of which will be payable on May 25 to stockholders of record as of May 15. We think our first quarter results represent a good start to the year and we look forward to continuing to revitalize growth and deliver improved financial performance in 2018 and beyond. That completes our prepared remarks. I will now turn the call back over to the operator to begin the question-and-answer session. Operator?

Thank you. [Operator Instructions] Thank you. This does conclude the question-and-answer session as well as today’s teleconference. You may disconnect your lines at this time. Thank you again for your participation.