Good morning ladies and gentlemen. Welcome to the CTI Industries Corporation announces second quarter and year-to-date financial results conference call. This call is being recorded. This conference call may contain forward-looking statements, as defined in Section 27A of the Securities Act of 1933 as amended, including statements regarding, among other things, the company's business strategy and growth strategy. Expressions, which identify forward-looking statements speak only as of the date this statement is made. These forward-looking statements are based largely on this company's expectations and are subject to a number of risks and uncertainties, some of which cannot be predicted or quantified and are beyond their control. Future developments and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. In light of these risks and uncertainties, there can be no assurance that the forward-looking information will prove to be accurate. I will now turn the call over to Stephen Merrick, President. Please go ahead, sir.

Good morning everyone and thank you for participating in this call. My name is Stephen Merrick and I will be presenting our report with Tim Patterson, our Chief Financial Officer; and Stan Brown, our Director of our Company and Director of Investor Relations. In general, our results for our second quarter are the weakest of our year and we do expect that will be the case this year as well. Even with that history though, our performance in the second quarter and the first half of this year has been below our expectations. While performance in our foil and latex balloon product lines has been reasonably strong during this period, revenues in our vacuum sealing and commercial film lines have been well below the same periods of last year and have negatively affected our results. We have undertaken a number of initiatives to improve our profitability in the second half of this year and believe that our performance will improve substantially in that period. We do anticipate improvement in our revenues for our vacuum sealing line in the second half of the year as the effects of a major sales promotion by a principal customer late last year wears off. We are installing two new foil balloon converting machines in September which will enhance our production of foil balloons in the fourth quarter. Further, we have taken and are taking now significant actions to reduce our operating expenses and are working to achieve total annualized reductions in operating expense of at least $1.4 million. In summary, for the second quarter of this year, net sales were $12,812,000, down 9.5% from net sales of $14,151,000 for the second quarter of 2016. For the six-month period ended June 30, 2017, net sales were $28,171,000, down 4% from net sales of $29,355,000 for…

[Operator Instructions]. We will go to Jeff Rosenkranz with Metronome Partners.

Hi Steve. Obviously a tough quarter, though it appears the topline issue really was largely related to vacuum sealing line. It sounds like you are taking the right steps on costs, given the cost cuts, the sellthrough on vacuum sealing and that new converting machine is coming online, do you feel like the rest of year should be on plan?

We do feel we would be on plan, and generally, our second half is our strongest half of the year in any event, and we expect that that certainly will be the case this year as well, and with the significant cost reductions that we have already implemented, our expectation is that our performance will improve substantially in the second half of the year.

Got it. Thanks.

Thank you. And with no additional questions, I would like to turn the floor back over to our speakers.

Thank you all for participating in the call today. We were disappointed in our results for the second quarter, but as I said, we make a lot of efforts here to improve our performance, particularly during the second half and beyond; and as I said, our management is totally committed to that end. Thank you very much.

Thank you. Ladies and gentlemen, again, that does conclude today's conference. Thank you all again for your participation.