Greetings and welcome to the Nortech’s Systems First Quarter 2015 Conference Call. At this time, all participants are in a listen-only mode. A brief 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 turn the conference over to your host, Ms. Paula Graff, VP and Chief Financial Officer. You may now begin.

Thank you. Good morning and welcome to Nortech Systems' first quarter fiscal 2015 conference call. I’m Paula Graff, Vice President and CFO, and with me is Rich Wasielewski, Nortech’s President and CEO. Following my introduction, Rich will offer comments on our first quarter results with some highlights on yesterday's Annual Shareholder Meeting presentation and an update on the markets we serve. Then we’ll open up the call for questions. Before we begin, please be advised that statements made during this call may be forward-looking and are subject to risk factors and uncertainties. Please see the complete Safe Harbor Statement in our press release and SEC filings. I now will turn the call over to Rich Wasielewski.

Thank you, Paula, and hello everyone. I begin this morning with addressing our first quarter results. Our revenue was 26.5 million up 1.5% from Q1 of 2014. Industrial sales lead the way up 17% year-over-year. Medical sales were off 6% in part because of a large customer was selling through inventory in the first quarter, which impacted their order pattern. The strong U.S. dollar and the weak economies in Europe and Asia has been affecting the first and second quarters. Aerospace and defense sales were down 27% year-over-year as this market adjusted to the new defense budget levels. However, we are seeing encouraging signs of traction and made a new program win increasing backlog and pipeline activity. Our 90 day backlog at March 31st was 18.3 million, up 6% during the quarter. Strongest increases were in aerospace and defense, up 18% from the start of the year and 31% over the prior year. Our industrial backlog also showed growth up 8% sequentially and 37% year-over-year, where our medical was down slightly from the start of the year. Our medical backlog was down 3% during the quarter, as I mentioned a large medical customer is working off the inventory. Also, other medical equipment customers are feeling the impact of the affordable healthcare act with hospitals re-evaluating and delaying capital purchases. Profitability, we posted an operating loss for the first quarter of 202,000 or $0.07 per share. This compares on an operating income of 236,000 or $0.03 per share for the first quarter of 2014. The loss is attributed to two main factors. Our gross margin for the quarter was only up 10.8 %, down from 11.8% in the first quarter of 2014 and well below planned expectations. This received well with the temporary shift in product mix, less medical, more industrial.…

[Operator Instructions] Our first question comes from Sheldon Grosky for Grosky Associates. Please proceed with your question.

If I remember correctly you also had a weak fourth quarter. You said you had a strong finish to the year, but I think you remember that the fourth quarter was a down quarter. Am I correct in that?

Well, we did 29 million [indiscernible] in revenue and I believe $0.08 a share

So you're expecting better second half and hopefully the 18 is a negative numbers. This is like good therapy for the stock. So with the greater volume, would you expect to be back in the profit column?

Sheldon, could you please repeat that

With the greater sale volume you're expecting in the second half of the year, would you expect the company to be profitable?

Yes, the investments that we're making should start being beneficial in the second half.

Okay. Thank you.

And the mix product with it as well.

[Operator Instructions] There are no further questions at this time. I'd like to turn the call back over to management for closing remarks.

If there are no further questions, we’ll conclude the call. Thanks for your interest in Nortech and we look forward to speaking with you in the future. Have a great day.

This concludes today's teleconference. We thank you for your participation. You may disconnect your lines at this time.