Good afternoon, ladies and gentlemen and welcome to the quarter one 2018 CPI Card Group earnings conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions]. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. William Maina. Mr. Maina, you may begin.

Thank you and good afternoon everyone. Welcome to the CPI Card Group first quarter 2017 earnings conference call. Participating on today's call from CPI Card Group are Scott Scheirman, President and Chief Executive Officer and Lillian Etzkorn, Chief Financial Officer. Before we begin, I would like to remind everyone that this call may contain forward-looking statements as they are defined under the Private Securities Litigation Reform Act of 1995. Please refer to the disclosures at the end of the company's earnings press release for information about forward-looking statements that may be made or discussed on this call. The earnings press release is posted on CPI's website. Please note there is also a presentation that accompanies this conference call and is also accessible in the IR section of our website. Please review the information along with our filings with the SEC and on SEDAR for a disclosure of factors that may impact subjects discussed on this call. All forward-looking statements made today reflect our current expectations only and we undertake no obligation to update any statements that reflects the events that occur after this call. Also during the course of today's call, the company will be discussing one or more non-GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income and loss, adjusted diluted earnings and loss per share, free cash flow and constant currency. Please see the earnings press release on CPI's website for all the disclosures required by the SEC, including reconciliations to the most comparable GAAP measures. Now I would like to turn over the call to Scott Scheirman, President and Chief Executive Officer. Scott?

Thanks Will and good afternoon everyone. Thank you for joining us on our first quarter 2018 conference call. As you know, we pre-announced preliminary results last Wednesday, May 2, as part of our press release announcing Lillian's transition. Our fully reported first quarter results are consistent with our preannouncement. We had a good start to 2018 with operating results in line with our expectations and progress against our strategies and plans. I will begin by briefly summarizing our first quarter financial results, I will then discuss our ongoing strategies to drive growth and deliver shareholder value while also providing you with a few business and product updates. Then I will turn the call over to Lillian who will go through our financials in detail. Now turning to slide four of the presentation. As I mentioned, our first quarter results were in line with our expectations. We generated revenue of $59 million, up 5% year-over-year. Revenue growth was primarily driven by strong year-over-year growth in our U.S. prepaid debit segment and momentum in our emerging solutions, including Card@Once. CPI On-Demand and CPI Metals. Our first quarter topline performance was partially offset by continued softness in U.S. credit and debit card market and weaker than expected U.K. Limited results. We recorded a GAAP net loss of approximately $7 million in the first quarter and adjusted net loss of approximately $5 million. We posted adjusted EBITDA of approximately $3 million and we ended the first quarter with $40 million of total liquidity comprised of $20 million of cash on our balance sheet and $20 million available on our revolving credit facility. Now turning to slide five. As we discussed with you on our last earnings call, our goal at CPI is to be the partner of choice by providing market-leading quality products and…

Thanks Scott and good afternoon everyone. Turning to slide 10, you will see an overview of our first quarter 2018 results. First quarter net sales were $59.1 million, an increase of 5.5% from $56 million in the first quarter of 2017. Product net sales decreased 7.4% year-over-year to $27.6 million in the first quarter, primarily reflecting an 8.2% decline in the number of U.S. debit and credit EMV chip cards sold and lower EMV card average selling prices. EMV volume was up 22.6% from the fourth quarter of 2017 to 16.8 million. Services net sales increased 20% year-over-year to $31.5 million, primarily driven by growth in our U.S. prepaid debit segment. Gross profit for the first quarter was $14.4 million, representing a gross margin of 24.4% compared with 28.7% in the first quarter of 2017. Loss from operations in the first quarter of 2018 was $4 million compared with an operating loss of $1.8 million in the prior-year period. Included in our loss from operations during the first quarter of 2018 are $300,000 of restructuring charges and an $800,000 accelerated depreciation charge related to the consolidation of our personalization site. The year-over-year changes in our gross profit margin and income from operations for the first quarter of 2018 primarily reflect our topline growth and ongoing cost reduction actions and efficiency initiatives, offset primarily by the negative impact of absorption of overhead costs from lower volumes, weaker than expected results in our U.K. Limited segment and investments in our business to enhance our products, solutions and go-to-market strategy. As we discussed with you on our last call, we continue to seek ways to improve our cost efficiencies, enabling us to be market competitive. Increased efficiencies will help our ability to improve profitability, drive cash flow and build a stronger foundation for…

Madison, thank you. Everyone, thank you for participating on our earnings call today and we continue to look forward to updating you in the future with our strategies and our progress as we move forward. Madison, you can now end the call. Thank you.