Hello, and welcome to the Female Health Company Third Quarter of Fiscal Year 2013 Operating Results Conference Call. All participants will be in listen-only mode. (Operator Instructions). After today’s presentation, there will be an opportunity to ask questions. Please note this event is being recorded. The statements made on this conference call, which are not historical fact, are forward-looking statements based upon the company’s current plan and strategies and reflect the company’s current assessment of the risks and uncertainties related to its business, including such things as product demand and market acceptance, the economic and business environment, and the impact of government pressures, currency risks, capacity, efficiency and supply constraints, and other risks detailed in the company’s press releases, shareholder communication, and Securities and Exchange Commission filings. For additional information, the company urges you to consider reviewing its 10-Q and 10-K SEC filings. I would now like to turn the conference over to O.B. Parrish, CEO and Chairman. Please go ahead.

Thank you, Gary. Good morning and welcome to the company’s third quarter 2013 conference call. Michele Greco, our Vice President and CFO is here with me in Chicago, and Mike Pope, our VP, U.K. and Malaysian Operations, is participating from London office. This morning, I’ll address the financial results, long-term demand factors that will impact future results and the outlook. And then, we will take some questions. As usual, when I refer to years, I am referring to the company’s fiscal year which ends September 30th. After six consecutive quarters of record results, FHC experienced some volatility and the results for the third quarter decreased from the prior year quarter, although it’s important to note that comparison is against our record third quarter 2012. As previously discussed and reflected in our SEC filings, the result reflects volatility in public sector purchasing. They do not reflect any change in basic demand or the long-term outlook. We have experienced volatility in the past and may do so in the future, however, it’s important to note that for the last several years since we achieved profitability, including periods of volatility, the average annual compound unit sales growth rate has been 23.7% per year. Turing to the third quarter, unit sales decreased 17% to $12.6 million versus the prior year quarter. Revenues decreased 16% to $7.3 million. Cost of goods decreased 12% based on the impact of lower volume of material; however, this was more than offset by one-time investments in quality insurance and warehousing. Gross profit decreased 25% to $3.7 million or 31% percent of sales and $5.3 million or 61% of sales in the prior year quarter. The decrease in margin is primarily attributable to the lower volume and the one-time cost related to investments in quality assurance and warehousing. Operating expenses…

(Operator Instructions) Our first question comes from Jack Wallace of Sidoti & Company.

Thank you for taking my questions, O.B. and Michele.

Sure.

Couple of questions from me and I will keep the two, and then hop back in the queue. One, it looks like the inventory level is climbing up again this quarter, its about a million higher than it was in the first quarter as is the volatility with orders as you've commented on. Can we beat in to a larger fourth quarter here? I’m sorry I missed your comment on what might happen in the fourth quarter. Would you mind repeating that as well?

I repeat that. What I said is the volatility we experienced in the third quarter we don't know; it could affect the fourth quarter. One of the things we deal with the uncertainty is the assumption if we don't get orders we are dealing with getting special labeling for a country or letters of credit and sometimes it's going to follow one quarter and other. In reference to your inventory question, Jack, there is one factor here that it’s important. One of our significant public sector customers asked if we would scale the inventory for them. In other words, we would build a certain amount of material, they would pay for it, and then we will hold the inventory for them and in that manner they would have immediate access for small orders if they would like to have ship to various countries. So, fundamentally, we have agreed to do that and in part we haven’t had a final order. We expect it will be and we anticipate will be and we've been building some inventory to fulfill that need.

And so just to follow-up on that, should we expect higher levels of inventory going forward as part of this agreement, is that kind of a one to two quarter agreement or?

No, it will be the sort of thing that you will build it, you will put a X number of units in place, they would pay for, and then as they order it down you will replenish it.

Thank you. And then second question and I will hop back in the queue. I was wondering if you could break out the over the top costs that were associated with those was it retrofitting the warehouse for safety issues? Maybe I missed the comment on that as well.

There are two things. We had one of our public sector customers put in some additional requirements for quality assurance, which we're happy to meet and can meet that, but it did require some additional investment, and we prefer to do that. And the other was in expanding our facility and our warehousing we have some additional one-time cost that we want to capitalize. We haven’t broken this out (inaudible) specific.

Okay, thank you. And when is the Q going to be filed?

It's going to be filed today.

Great, thank you so much. And I will hop back in the queue.

(Operator Instructions) Our next question comes from Peter McMullen of IPC.

Hi, O.B.

Good morning, Peter.

How are you?

Good.

I guess could you repeat the comment on the dynamics second quarter versus the third quarter orders that were completed and some comments on the backlog?

In terms of orders that we have completed the delayed orders in Brazil and South Africa that we have both of them completed. In fact, we have some additional orders in South Africa. We announced our backlog annually, we don’t do it quarterly. However, it is public that the Republic of South Africa yesterday tender for 15 million units, which hasn’t been granted or adjudicated at this point.

Thank you.

(Operator Instructions) Our next question comes from Dennis Scully of Essex Securities.

Good morning. One follow-up question, you mentioned that the inventory build that was helped pending future delivery it was paid for, does that mean that inventory builds that up in the third quarter revenue?

No, what I was saying it was quite -- it's not quite what I said. What I said was one of our key customers ask us to do that. And so, we billed the inventory in preparation for it. We believe that will be finalized. When it does the inventory will be ready for them. They will pay for it and then they can start drawing down on it.

Right, so they paid for what one is essentially when is delivered I presume.

When we sign the arrangement, they will take the possession of the inventory.

Understood. Thank you.

As there are no further questions, this concludes our question-and-answer session. I would like to turn the conference back over to O.B. Parrish for any closing remarks.

Thank you very much for your support and we will see you in one more quarter. And Gary you might tell them about the follow-ups.

To access the digital replay of this conference, you may dial 1-877-344-7529 or 1-412-317-0088 beginning at approximately 1:00 PM Eastern Time today. You will be prompted to enter a conference number, which will be 10031850. You will be prompted to record your name, and company when joining. The conference is now concluded. Thank you for attending today’s presentation. You may now disconnect.