Welcome to U.S. Auto Parts First Quarter 2018 Conference Call. On the call from the company are Aaron Coleman, Chief Executive Officer; and Neil Watanabe, Chief Financial Officer. By now everyone should have access to the first quarter 2018 earnings release, which went out today at approximately 4 p.m. Eastern time. If you have not received your release, it is available on the Investor Relations portion of the U.S. Auto Parts website at usautoparts.net by clicking on the U.S. Auto Parts Investor Relations tab. This call is being webcast, and a replay will be available on the company's website through May 22, 2018. Before we begin, we would like to remind everyone that the prepared remarks contain certain forward-looking statements within the meaning of the federal securities laws, and management may make additional forward-looking statements in response to your questions. The forward-looking statements include, but are not limited to, statements regarding future events, our future operating and financial results, financial expectations, expected growth and strategies, key operating metrics and current business indicators, capital needs and deployment, liquidity, product offerings, customers and suppliers and competition. The forward-looking statements are based on current information, and expectations are subject to uncertainties and changes in circumstances and do not constitute guarantees of future performance. The forward-looking statements involve a number of factors that could cause actual results to differ materially from those statements. We refer all of you to the risk factors contained in the U.S. Auto Parts Annual Report on Form 10-K and quarterly reports on Form 10-Q filed with the Securities and Exchange Commission for a detailed discussion on the factors that can cause actual results to differ materially from those projected in any forward-looking statement. U.S. Auto Parts assumes no obligation to, nor does it intend to, update or revise any…

Thank you, Operator. Good afternoon, everyone, and thank you for joining us to discuss our first quarter 2018 results. I'd like to provide a summary of the financials reported in our press release today, as well as an overview of key business metrics. Unless specifically noted, I would also like to remind listeners that all metrics exclude the AutoMD operating segment, which is being recorded as discontinued operations following the dissolution of the AutoMD subsidiary in the first quarter of 2017. Net sales for the first quarter were $78.4 million, a decrease of 3%, compared to $80.8 million in the year ago quarter, with the decrease largely driven by 13% lower e-commerce sales. This was partially offset by an 11% increase in our marketplace sales channel, driven by our strong value proposition and continuous expansion of private label products. In fact, we added approximately 1,500 new private label SKUs during the quarter. Private label sales grew 3% in Q1 and accounted for 75% of net sales, compared to 71% in the year ago period. As discussed on the prior call, during the beginning of the quarter, we experienced some softness in the private label sales. However, these sales began to pick up and were nearly double digit in growth in the last month of the quarter. Also note that offline sales, which is comprised of our wholesale revenues, were up 15% in Q1 to $8.7 million. Gross margins in Q1 increased 50 basis points to 29.9%, compared to the year ago period. The increase in margin was driven by our higher-margin private label mix as well as optimized pricing strategies. We continue to expect gross margins to range between 29% and 30% going forward. We reduced our total OpEx in the first quarter to $21.9 million compared to $22.6 million…

Thank you, Neil. Let me begin by thanking all of the U.S. Auto Parts team members for their continued focus on improving the customer experience and building long-term value. As discussed on our last quarterly call, the first quarter got off to a slow start. However, we launched several web initiatives throughout the quarter that quickly drove meaningful improvements in conversion and began to improve our e-commerce sales comp trend. In the second half of the last year, we communicated our strategy to improve the customer experience, increase conversion and accelerate e-commerce growth by implementing improvements to our product landing pages, product discovery process, checkout, mobile, site speed and optimizing the post-purchase experience. As reflected by our Q1 recovery in March, we believe our strategy to revitalize growth in our e-commerce business is beginning to bear fruit. We're in the process of deploying additional initiatives from our product road map to our flagship sites, and the early results continue to show promise. We are also continuing to embrace the strong growth in our marketplace channel. It's worth noting that our Q1 was our ninth consecutive quarter of double-digit marketplace sales growth, reflecting our commitment to being present wherever consumers are purchasing auto parts online. We remain in the process of expanding our current marketplace partner network, while also working to expand our relationships with current partners. Given our efficient supply chain, as well as our broad product assortment, we continue to believe there is tremendous opportunity to expand our reach through these and other marketplace channels. We've received several inquiries from the investment community regarding the impact of tariffs on our business. Fortunately, the tariffs that went into effect do not impact any of the aftermarket products we sell. We'll continue to monitor the situation closely and provide any relevant…

Thank you all for joining the call today. We look forward to meeting with some of you at the Jefferies automotive conference in May or during our periodic non-deal roadshows over the next couple of months. If we don't chat then, we look forward to speaking with you next when we report our second quarter results in August.

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.