Good morning. Thank you for joining us for the Stereotaxis Second Quarter 2018 Earnings Conference Call. Certain statements during the conference call and question-and-answer period to follow may relate to future events, expectations and, as such, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the company in the future to be materially different from the statements that the company's executives may make today. These risks are described in detail in our public filings with the Securities and Exchange Commission, including our latest periodic report on Form 10-K or 10-Q. We assume no duty to update these statements. [Operator Instructions]. As a reminder, today's call is being recorded. It is now my pleasure to turn the floor over to your host, David Fischel, Chairman and CEO of Stereotaxis.

Thank you, Operator. Good morning, everyone. I'm joined today by Marty Stammer, our Chief Financial Officer. I stated on our last call that we are deep in execution mode at Stereotaxis. That remains the case. We have seen some of that execution during the second quarter, and I'm pleased with our progress. In the second quarter, we were excited to announce 2 important strategic agreements. In June, we announced an extension to our development alliance and supply agreement will Johnson & Johnson's Biosense Webster. Biosense Webster is the undisputed leader in the cardiac ablation market, and our long-term collaboration with Biosense has been key to Stereotaxis' development. The extension agreement ensures the continued global availability through the end of 2022 of the family of magnetic ablation catheters currently manufactured and commercialized by Biosense. The agreement also extends, without modification, the financial arrangement under which Stereotaxis receives a royalty on the sale of those catheters and the current nonexclusive nature of the collaboration. The Stereotaxis and Biosense teams work together on a daily basis to support hundreds of our joint physician customers globally. We appreciate and look forward to our continued collaboration with Biosense. In May, we announced a new collaboration with Acutus Medical, a San Diego-based private company that has developed a highly innovative cardiac mapping system. The system is unique and aligned for contactless rapid acquisition of high-resolution anatomical and electrical maps of the heart chamber. This is particularly useful for complex atrial fibrillation patients. It is expected to enable improved diagnosis of such arrhythmias and more rapid and effective procedures. Our collaboration was announced just prior to the Heart Rhythm Society's annual conference. I was pleasantly surprised by the significant positive feedback we received from physicians to this announcement, with many physicians visiting our booth, asking to be…

Thanks, David, and good morning, everyone. Revenue for the second quarter of 2018 totaled $7.6 million. Recurring revenue was $7.2 million in the second quarter, up 9% from $6.6 million in the prior year quarter. Recurring revenue for the first half of 2018 of $14.2 million was up 6% from the first half of 2017. System revenue in the second quarter was $300,000, down from $1.8 million in the prior year quarter. System revenue in the prior year quarter primarily reflected the shipment of a Niobe system to an international distributor. Gross margin in the quarter was $6.2 million or 82% of revenue compared to $6.3 million and 74% of revenue in the second quarter of 2017. Operating expenses in the second quarter were $6.8 million, up from $6.7 million in the prior year quarter. The change in operating expenses primarily reflects increased investment in research and development. Operating expenses for the first half of 2018 were $13.6 million, down from $14.3 million in the first half of 2017. Operating loss and net loss in the second quarter were $600,000. Free cash flow in the second quarter was positive $400,000. This compares to negative free cash flow of $700,000 in the second -- in the year-ago second quarter and $2 million in the first quarter of 2018. Free cash flow in the second quarter was positively impacted by the timing of receivable collection, which negatively impacted the first quarter 2018. Negative free cash flow for the first half of 2018 was $1.6 million compared to $3.4 million in the first half of 2017. At June 30, 2018, Stereotaxis had cash and cash equivalents of $12 million, no debt and $3.1 million in unused borrowing capacity on its revolving credit facility, for total net liquidity of $15.1 million. I will now hand the call back to David.

Thank you, Marty. As detailed in our press release, we expect to show continued year-over-year recurring revenue growth in the coming quarters and are reaffirming our full year 2018 guidance of approximately $28 million in recurring revenue. This amount will represent the highest annual level of recurring revenue the company has achieved in its history. Operating expenses are expected to moderately increase in the back half of 2018 as we ramp up our investment in several strategic innovation initiatives. Stereotaxis' balance sheet will allow the company to deliver on its commercial and innovation initiatives over the coming years and reach profitability without the need for additional financings. That concludes our prepared remarks. Operator, can you please open the line to questions?

[Operator Instructions]. We'll take our first question from John Morganelli [ph], Investor.

In the last call, there was some discussion or some mention about a reverse stock split. Is that off the table now? I know some of the people on the call had expressed concern from a stockholder's point of view, and I believe David had indicated it wasn't in the plans at that time. I was just curious as to where that's at.

Thanks for the question. So yes, if you remember, the question -- a similar question was asked also last call. Shareholders did approve the authorization for the board to do a reverse split if that was deemed in the best interest of the company. As I described on the last call, we have no plan to do so in the coming months, and really, the only reason that we would do so would be to uplist on NASDAQ. That remains the main barrier. Our share price remains the main barrier to uplisting on NASDAQ. I think there would be fundamental benefits to being listed on NASDAQ, but obviously, we can also try to wait for the stock to improve fundamentally. And we're not going to do a reverse stock split unless it's paired with some very positive fundamental improvements to the company, which would drown out any negativity seen from such a reverse split. But there's nothing in the plan and nothing expected in the near term.

[Operator Instructions]. Speakers, we do not have any questions in queue at this time.

Okay. If no more questions come up, thank you for the continued support and interest in Stereotaxis. We look forward to working hard on your behalf over the coming months and speaking again at our next quarterly call. Thank you.

Thank you. Ladies and gentlemen, this concludes today's conference. You may now disconnect.