Good day, ladies and gentlemen, and welcome to Phibro Third Quarter Financial Results Conference Call. [Operator Instructions] I would like to turn the conference over to Richard Johnson, Chief Financial Officer. You may begin, sir.

Thank you, Operator. Good morning, everyone. Welcome to our earnings call for the third quarter ending March 2018. Unfortunately, Jack Bendheim, our Chief Executive Officer, is not able to join us today, as he unexpectedly had to attend to an urgent family matter. With us today is Larry Miller, Phibro's Chief Operating Officer; and myself, Richard Johnson, Chief Financial Officer. We will be available on the call and to answer your questions during the Q&A session. Before we begin, let me remind you of the standard cautions that the earnings press release and financial tables can be found on the Investors section of our Web site at www.pahc.com. And we are also providing a simultaneous webcast of this morning's call, which can be accessed on the Web site as well. Today's presentation slides and a replay and transcript of the call will also be available on the Web site later today. Our remarks today will include forward-looking statements, and actual results could differ materially from those projections. For a list and description of certain factors that could cause results to differ, I refer you to the forward-looking statements section in our earnings press release. Our remarks today will also include references to certain financial measures, which were not presented in accordance with generally accepted accounting principles, or U.S. GAAP, and I refer you to the Non-GAAP Financial Information sector in our earnings press release for a discussion of these measures. Reconciliations of these non-GAAP financial measures to the most directly comparable U.S. GAAP measures are included in the financial tables that accompany the earnings press release. So in Jack's absence, let me provide his introductory comments. As you saw from our press release, our third quarter performance was a strong one, with Animal Health segment sales up 9% over last…

Thank you [Operator Instructions] And our first question comes from Michael Ryskin from Bank of America.

Hey, guys, thanks for taking the question.

Hey, Mike.

Congrats on the quarter, first of all. And I wanted to focus on the vaccine product. You discussed developing for canine Lyme disease. It sounds like a real interesting opportunity. Is there any other details you can tell us about who the agreement is with? Are there any milestone payments or sort of what the format is? And any time lines on commercialization?

The agreement is confidential, so we can't talk about any of the details. I would say, this is probably a typical development type agreement where at each stage of the development process we can reevaluate and decide to continue and continue investing or not. I, in the press release, talked about 18 to 24 months, and I think that's probably a reasonable time line to think about when we might first have revenues.

Okay, that's really helpful. And then along those same lines, you talked about the increased spend, the increased investment in the business. Is there more on the -- are you talking on the R&D front, or is that changes to the sales force as you get these products close to market to help you commercialize in this new segment?

I think it's more on the development side of the business, where we're looking at going into joint development opportunities or working with third parties who have interesting novel and compelling product ideas that their idea, combined with our ability to commercialize and bring a product to market is a winning combination. So we'll also continue to add people in selected geographies. So, not to downplay that, but it'll be both of those things.

Okay, great. And if I can squeeze in one more, you talked about strength in the U.S. dairy for the nutritional specialties. We've heard from some of the competitors that the challenge in market right now and from the industry data we're seeing is certainly that the dairy market in the U.S. is -- that are undergoing some changes there are less than favorable. Can you talk about what's driving the strength there? Is there any particular product line?

No. Maybe I wasn't -- I should've been more clear. Our strength in that segment is really in international markets. We are feeling the pain, I think that the dairy industry and some of our competitors are feeling in the domestic market.

Got it. Is there any benefit from one of your major competitors recently did a strategic exit from Posilac [ph], any opportunity to gain share there or take over that from that strength?

No. That was, I would say, was sort of a unique product to them, and no is the short answer.

Okay, all right. Thanks a lot.

Thank you. [Operator Instructions] And I am showing no further questions at this time. I would now like to turn the call back to Richard Johnson, Chief Financial Officer, for any further remarks.

Well, thank you, everyone. We look forward to talking again when we put out our year-end numbers, which will be the end of August. We'll talk then. We'll also -- I anticipate providing guidance on our new fiscal year at that time, so until then, everyone, take care. Bye now.

Ladies and gentlemen, thank you for your participation in today's conference. This does conclude today's program. You may all disconnect. Everyone have a great day.