Good afternoon, everyone. And welcome to OraSure Technologies’ 2016 First Quarter Financial Results Conference Call and simultaneous webcast. As a reminder, today's conference is being recorded. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks there will be a question-and-answer period. [Operator Instructions] To allow time for as many questions as possible questioners are asked to limit themselves to only a single question with no more than one follow-up question related to the same topic. Once the follow-up is completed the questioner can rejoin the queue for further questions. OraSure Technologies issued a press release at approximately 4 P.M. Easter Time today regarding its 2016 first quarter financial results and certain other matters. The press release is available on our website at www.orasure.com or by calling 610-882-1820. If you go to our website, the press release can be found by opening the Investor Relations page and clicking on the link for press releases. This call is also available real time on our website and will be archived there for seven days. Alternatively, you can listen to an archive of this call until midnight, May 11, 2016, by calling 855-859-2056 for domestic or 404-537-3406 for international. The access code is 83627952. With us today are Doug Michels, President and Chief Executive Officer and Ron Spair, Chief Operating Officer and Chief Financial Officer. Doug and Ron will begin with opening statements which will be followed with a question-and-answer session. Before I turn the call over to Doug, you should know that this call may contain certain forward-looking statements, including statements with respect to revenues, expenses, profitability, earnings or loss per share or other financial performance, product development performance, shipments and markets, business plans and regulatory filings and approvals, expectations and strategies. Actual results could be significantly different. Factors that could affect results are discussed more fully in the Company's SEC filings including its registration statements, its Annual Report on Form 10-K for the year-ended December 31, 2015, its Quarterly Report on Form 10-Q and its other SEC filings. Although forward-looking statements help to provide complete information about future prospects, listeners should keep in mind that forward-looking statements are based by information available to management as of today. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after this call. With that, I would like to turn the call over to Doug Michels.

Great. Thank you, Rena, and good afternoon, everyone and welcome to our call. We are very pleased to report that we exceeded expectations on both the top and bottom lines for the first quarter of 2016. Consolidated net revenues for the first quarter were $29.1 million a 7% increase over the same period of 2015. This growth was driven by higher sales of our OraQuick HCV, molecular collection systems, and cryosurgical systems products. Domestic HCV sales increased 59% over the first quarter of 2015. Total HCV related revenues, which include exclusivity payments under our HCV co-promotion agreement with AbbVie were $6.3 million for the quarter. Molecular collection systems revenues rose 3% from the prior year quarter, largely due to higher sales to customers in the academic research market. Cryosurgical systems revenues rose 53% to $3.9 million for the quarter. The revenue growth combined with higher margins and lower operating expenses generated $2.4 million in consolidated net income for the first quarter. Ron will provide further detail on our first quarter financial performance along with our expectations for 2Q of 2016. I will then discuss some additional developments in our business. So with that let me turn the call over to Ron.

Okay. Thanks Doug, and good afternoon, everyone. Our first quarter 2016 consolidated net revenues increased 7% to $29.1 million compared to $27.1 million reported in 2015. Our consolidated net product revenues of $25.2 million increased 6%, largely as a result of higher sales of our cryosurgical systems, OraQuick HCV, and molecular collection systems products, partially offset by lower sales of our professional OraQuick HIV product and the absence of sales of our OraQuick Ebola product. Other revenues were $3.8 million in the current quarter, of which $3.3 million represents the recognition of exclusivity payments under the AbbVie, HCV co-promotion agreement and $482,000 represents revenue associated with Ebola-related funding we received from the Biomedical Advanced Research and Development Authority or BARDA. Other revenues in the first quarter of 2015 also included $3.3 million of AbbVie exclusivity payments. HCV product revenues increased 34% to $2.9 million in the first quarter from $2.2 million in the prior year. Domestic OraQuick HCV product sales increased 59% in the first quarter of 2016 to $1.9 million from $1.2 million in the prior year period. This continued expansion of our core domestic HCV business resulted from higher sales to current customers who have expanded their HCV testing program along with the addition of new programs primarily in the public health market. International sales of our HCV test in the first quarter 2016 increased 3% to a $1 million from $972,000 in the same period last year, primarily due to the expansion of our business in Asia. Total HCV-related revenues, including the AbbVie exclusivity payments increased 14% to $6.3 million in the first quarter of 2016, compared to $5.5 million in the first quarter of 2015. In 2015, we began selling our OraQuick Ebola Rapid Antigen test to the CDC for field testing in Africa. Sales of…

Okay. Thanks, Ron. As noted earlier, DNA Genotek’s revenues increased in the first quarter of 2016. We remain very enthusiastic about the future prospects for this business as we continue to bring on a steady stream of new customers. We continue to generate the vast majority of our molecular collection systems revenues in the genomics market, split between academic and commercial customers. During the first quarter these revenues were split in roughly equal parts, which is a departure from our recent trend of 65% commercial and 35% academic research revenues. As this part of our business returns to higher growth rates in future quarters we would expect the revenue split to move closer to the historic norms. During the last earnings call I mentioned several examples of where our genomics business is becoming more diversified. We had a customer acquire product to support the longitudinal study on the epidemiology of aging that we discussed during our last call. We also provided collection kits custom packaging and fulfillment services for a large long-term study on Autism conducted by the Simons Foundation Autism Research Institute. This customer launched an online research initiative called SPARK, S P A R K to recruit 50,000 individuals with Autism and their family members. This is a three-year project that aims to be the largest Autism study ever undertaken in the United States to advance understanding of the causes of Autism and develop new treatments and support protocols. DNA Genotek is providing a customized solution designed to facilitate home collection of DNA samples by study participants. A large order was placed for this study in the first quarter and it will be fulfilled over the next several years. I also mentioned that we've begun selling product to a personal genomics company in China for use and providing…

[Operator Instructions] Our first question comes from line of Mark Massaro with Canaccord Genuity. Your line is now open.

Hey, guys thanks for the questions and nice quarter.

Hey, Mark, thanks.

Thanks, Mark.

On the DNA Genotek mix, I think you alluded to two customers that ordered in the prior year that did not order in Q1 of this year. My question is are these customers that have left OraSure or DNA Genotek or do you expect them to reorder in future quarters?

So specifically to those customers they did not move any kind of a competitive product. So whether they reorder in future periods is that PVD. I think what's important to appreciate from the quarter results is that academic was very strong and you should know that we're highly confident that the commercial business will deliver strong year-on-year growth for 2016. That's one of the reasons why in our prepared remarks we said that in future periods I think you're going to see a more customary mix of commercial and academic revenues with the commercial being the majority. Importantly too, as we look at the growth drivers for DNA Genotek, we're looking certainly for new customers as well as new products. And so as we mentioned, we continue to capture new customers in both the genomics as well as academic space, but importantly we're also looking forward to continuing the growth that we're seeing in our microbiome business and we had a very strong quarter there as well.

Great. And on Zika, have you started to develop capabilities for the Zika test and if you have not, can you comment on where you're at. I know that you're pursuing external funding, just curious any commentary on how close you might be to getting it. I would love to hear any thoughts there?

So as I mentioned in the prepared remarks again, we certainly have learned a lot through our Ebola development efforts and through the work that we – the successful result we had with Ebola in securing external funding. We're following a very similar course with regards to Zika. We know that there is an urgent need for a highly sensitive and accurate rapid diagnostic for Zika. We've had significant discussions with leaders in different parts of our federal government as well as in the public health community as well as folks in the academic research market not just here, but around the world. In order to move this effort forward, we have invested some of our own resources to securing raw materials and samples which are essential to not only the development of functional prototypes, but also materials that will enable us to evaluate the accuracy and the effectiveness of those prototypes. While that work is going on and it continues, we are also pursuing development funding on a parallel track. And I don't have anything specific to update you on in that regard, but I do. I am encouraged by the discussions that we've had and I am quite hopeful that we will secure the development funding to enable the complete development of one or more rapid OraQuick test for the detection of Zika infection.

Great. And just one more from me I know that Zika’s often times compared to malaria, another company in the space obtained funding to develop an oral fluid malaria test. I want to just maybe gauge your temperature on developing a similar test and if you think there is a meaningful market for an oral fluid malaria test?

The malaria market there are a number of rapid diagnostics in the malaria space today. I think they maybe vary in quality, but one thing is for certain is they are being sold in the marketplace for extraordinarily low prices. So it's hard for me to appreciate the business rational for developing a test, when the market price for rapid malaria test today is in the $0.20 to $0.25 per device. Zika I think is very different. Certainly the number of Zika infections continues to expand significantly. The devastating effects of Zika infections in pregnant women is very concerning. New evidence that continues to be reported on everyday about sexual transmission and the risk of contracting Zika increasing list of contracting Zika as the mosquitoes spread is I think causing everyone a great deal of concern. So we think we're in a great position to develop and provide a tool to help deal with this serious issue and that's the direction we’re heading, we really want some support for that and I believe we’ll get it.

Great. Thanks again.

[Operator Instructions] Our next question comes from the line of Nick Jansen of Raymond James. Your line is now open.

Hey guys. I’ve been hopping enough calls so apologize if this has been hit and I’ll just go through the transcript, but it looks like your Domestic HIV business performed a bit better relative to the trend line that we saw exiting 2015 and I think you mentioned some new marketing initiatives just wanted to kind of get your thoughts on. What those are and how sustainable those initiatives can be?

Yes, so for sure we saw the business stabilize a little bit more in the first quarter I don't want to say that how it's going to play out for the year because I think we're going to still experience some headwinds, but yes we did see a dampening of the decline in Q1 for sure. We do have some additional information that we put in the hands of our sales reps that speak to the sensitivity of the OraQuick platform and this is newly generated data and the folks are out there detailing this to our customers and making sure our customers completely understand the strong performance profile of the OraQuick test which you know has been in the market for more than 10 years and we sold over 50 million of these units it’s highly sensitive and highly specific and highly accurate rapid diagnostics and we've got to make sure that that the marketplace completely understands that. Some of these fourth generation assay to be suited for testing in very high prevalence population. For most of the screening that takes place in the United States you're going to achieve nearest same level of accuracy and sensitivity and positive predictive value with the OraQuick test as you will from a fourth generation test and that's we're out promoting in a reception so that's been and quite positive. I also want to emphasize too that our efforts to expand self testing in other parts of the world specifically in Africa and Asia through the STAR program and is going to be an important opportunity to help minimize the impact of some of the degradation we're seeing in the domestic HIV professional business and then ultimately transition our HIV professional business to a growth business again. We’re very, very excited about this opportunity and we think it can scale substantially not necessarily in 2016 although we're going to see nice contribution and nice growth, but certainly in 2017 and beyond. And the feedback from the pilots where we were now beginning to deploy test has been very encouraging and we will continue to report on that in future calls.

That's helpful. And then maybe for you Ron, gross margin was you know exceeded my forecast quite nicely as to go back many years before we see a quarter like this from a margin perspective. And I’m sure that the cryo outperformance helped from a mix perspective, but how do we think about the gross margin trajectory over the next six to 12 months?

Yes, that’s a great question and obviously great answer as far as the cryo over performance in the professional marketplace here in U.S. had a substantial impact, but we also had lower scrap and spoilage costs that we really been working hard on here from an operations standpoint. We also saw good comps with respect to the elimination of the earlier lateral-flow patents from the prior year period, which helped us. And so I think that combines obviously with the mix led to the kind of margin performance that we had in the first quarter of 2016. Now, would I like 70% every quarter, absolutely, so I think that’s likely? We’re probably more in the mid-to-high 60s over the next six to nine months, but again mix is really a huge impact for gross margin and it certainly helped us in the first quarter here, but I would say that mid-to-high 60s would not be abnormal going forward.

And has the recent movement in the Canadian dollar played a role yet on your comps?

So for the comparison to the prior year it actually helped us by say probably about a $0.5 million in expenses versus the 2015 and that would be reflected a little bit in the cost of goods sold as well as in the operating expenses. So that's – if I would suspect though that with the Canadian dollar it stays where it is, we will have to reevaluate the impact particularly as we move out over the course of 2016, because we did see almost a quarterly decline in the value of the Canadian dollar right on through the end of 2015 and now it's turned around again. So we'll see what happens, I think it’s highly influenced by what the fed does on rate increases as well as oil and gas and also what the Canadian government does as far as their own economic policy. So hard to handicap where that's going, but we will keep an eye on it and certainly the team up in Canada is incredibly diligent about managing their expenditures to make sure that we [born] as best we can the impact of currency movements on the placement.

And then I guess my last question would be – you continue to tout a very strong balance sheet, you kind of did a small amount of share repurchases. I think you kind of had foreshadowed that on your last call that you did a little bit in January. We've seen a couple diagnostic assets flip hands since your last call. Just wanted to kind of get your broader sense of the market from a deal perspective and your relative excitements about the pipeline in the near-term?

So we have a value with a number of opportunities over the last quarter. And we continue to be keenly interested in adding technologies and/or companies that would complement our ongoing activities in the molecular collection systems business and possibly the infectious disease business. So we continue to see opportunities, we haven’t pulled the trigger as you see from our cash balances, but it's not the [last sign] and we will keep it up.

That's it from me. Thanks, guys. End of Q&A

[Operator Instructions] That brings to an end to the Q&A session of today's call. I will now turn the call over to Doug Michels for closing remarks.

Okay. Thanks everybody for your participation on today's call and of course for your continued interest in OraSure and look forward to speaking with you again in a few months. Have a great afternoon and evening. Thanks again.

Ladies and gentlemen, thank you for your participation in today's conference. This concludes the program and you may now disconnect. Everyone have a great day.