Good day, ladies and gentlemen, and welcome to the IsoRay First Quarter Fiscal 2020 Call. All lines have been placed in a listen-only mode and the floor will be open for your questions and comments following the presentation. At this time, it is my pleasure to turn the floor over to Mark Levin, Investor Relations. Sir, the floor is yours.

Thank you, operator. Good afternoon and thank you for joining us today for the IsoRay fiscal first quarter 2020 earnings conference call for the quarter ended September 30, 2019. Before we get started, I will take a few minutes to read the forward-looking statements. Certain statements in this conference call constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as amended. When used in this conference call, words such as will, believe, expect, anticipate, encourage and similar expressions, as they relate to the company or its management as well as the assumptions made by and information currently available to the company's management, identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current expectations and beliefs about future events as of today September 24, 2019. As with any projection or forecast, they are inherently susceptible to uncertainty and changes in circumstances and the company undertakes no obligation to and expressly disclaims any obligation to update or alter its forward-looking statements whether resulting from changes, new information, subsequent events or otherwise. Additional information concerning forward-looking statements is contained under the headings of Safe Harbor statement and risk factors listed from time to time in the company's filings with the Securities and Exchange Commission. We will begin today's call with Lori Woods, IsoRay's Chief Executive Officer; and then Jonathan Hunt, IsoRay’s Chief Financial Officer, who will discuss the fiscal first quarter 2020 financial results. Following their prepared remarks, we will take questions from our analysts and institutional investors. I will now turn the call over to Lori Woods.

Thank you, Mark. Good afternoon, and thank you for joining us today for IsoRay's fiscal first quarter 2020 earnings conference call for the quarter ended September 30, 2019. Following my remarks, our Chief Financial Officer, Jonathan Hunt will provide a more detailed review of fiscal first quarter financial results. These are exciting times for IsoRay. I'm very pleased to share with you the continued progress we have made and the accelerated growth we have achieved as we began fiscal 2020. Revenue for the first quarter increased 48% versus the year-ago quarter. This speaks to impressive sales growth. We also saw continued substantial operational improvements in the first quarter as evidenced by these notable achievements. We attained another record gross margin of 53.4%. We continue to demonstrate gains in shrinking our operating losses. They were reduced by 45% when compared to the fiscal first quarter of 2019. The numbers tell the story and it is clear that we have made significant progress over the last 12 months. Once again, the driver of revenue growth this quarter was our core prostate brachytherapy business. It increased 51% versus the fiscal first quarter of 2019. This also represents an increase of 20% sequentially versus the fourth quarter of fiscal 2019. Total company revenue also increased 20% sequentially. Our sequential sales growth reverses the trend of sales numbers that have been flat to down sequentially from the fiscal fourth to first quarters in past years. This speaks to the momentum we are realizing from the strategic direction and changes we have implemented to chart a new course for IsoRay. Clearly, the strategies we’ve employed in the steps we've taken to establish IsoRay's leadership role in the prostate brachytherapy therapy industry over the past year are resulting in accelerated organic growth and market share gains. One…

Thank you, Lori. I'm going to discuss some of the financial information that was contained in our press release for the fiscal first quarter ended September 30, 2019, that we released a short while ago. We anticipate that our Form 10-Q will be filed with the SEC on or around November 14. Revenue for the first quarter ended September 30, 2019 grew 48% to $2.315 million versus $1.56 million for the same period last year. As Lori mentioned earlier, the primary driver of revenue growth for the quarter was the company's core prostate brachytherapy business, which increased 51% versus the first quarter of 2019. First quarter revenue was comprised of 90% for prostate brachytherapy with the balance or 10% of revenue attributed to other brachytherapy primarily of sales to treat brain, gynecological, colorectal and other cancers. Gross profit as a percentage of revenues for the first quarter ended September 30, 2019 increased to a record 53.4% compared to 33.5% for the quarter ended September 30, 2018. The gross margin increase was primarily driven by higher sales and significantly lower isotope unit costs when compared to the prior year comparable period, continued leverage of the fixed cost components within cost of sales, and more efficient isotope usage. The lower isotope unit costs are related to our previously discussed change in our supply chain made at the end of calendar year 2018. First quarter gross profit dollars of $1.24 million increased 136% when compared to the same period last year. Total operating expenses consisting of research and development sales and marketing and general and administrative totaled $2.07 million or an increase of 1% compared with the first quarter of 2019 on revenue growth of 48%. Total R&D expense decreased 45% versus the comparable prior year quarter to $233,000. The decrease in total…

Thank you. [Operator Instructions] And we will take our first question from Ed Woo with Ascendiant Capital. Please go ahead.

Yes. Congratulations on the quarter. I have a question. You said that R&D levels will creep up a little bit in the next couple of quarters. What are you guys be investing in?

We really can't comment on that at this point in time, but we are always looking for new ways to partner with folks on the use of Cesium-131. And at this point in time, we can't comment, but we will as soon as we can. And thank you for your …

Sure. Then my next question is going on to Blu Build and GammaTile, which one do you think is going to be more incremental in the back half of this fiscal year?

Well, you know, I really can't comment on GammaTile because I’m not privy to what their market strategy is, but we're really excited at what -- about what we think Blu Build can do for us.

Great. And then you mentioned gross margin improvement, because you guys change the supply earlier this year. Will you continue to see incremental improvement going forward, or has most of the benefit been recognized?

We are actually not providing guidance on that right now at this time. There's just a lot of moving pieces that we’re currently dealing with.

Sure. Then just one general question. Have you had noticed any change in the competition out there? Have you guys fully seen any changes by other competitors, or other providers out there?

I can tell you that I really feel like we're taking the leadership role in the industry. We see less and less engagement from some of our competitors. Some of them like Bard have kind of slowed down in their participation in the industry. And we have a great sales team who is well trained and fully engaged and I really feel like they are helping represent us to potential customers out there and our customers as the industry leader.

Great. Thanks for answering my questions and good luck. Thank you.

Thank you so much.

And our next question comes from Arthur He with H.C. Wainwright. Please go ahead.

hey, guys. This is Arthur for RK [ph]. Thanks for taking my question and congratulations on another strong quarter. So regarding the revenues, I just wonder you guys have a very strong first quarter growth year-over-year. Should we assuming that the new run rate for the fiscal year 2020? And what would be the pull and the push for that revenue growth?

Arthur, thanks for the compliment on the quarter. We appreciate that. Consistent with what we’ve been doing, we’re not providing guidance at this point. There is just so many moving pieces that we’re still working through, including with Blu Build and GammaTile that we’re just not able to provide guidance on that.

All right. Understood. So no problem. And I just want to -- regarding the Blu Build, so is that already being full launch mode, or you guys still working on that to prepare the full launch later this year or early next year?

You know we publicly announced that regardless of being adopted by two facilities Hollings Cancer Center and AnMed Health, both of who are in South Carolina and as we get closer to a more commercial launch, we will be in communication with all of you.

Okay, great. Thank you. Thank you for taking my questions.

[Operator Instructions] And it appears there are no further questions at this time. I will turn the call back over to Lori Woods for any closing remarks.

Thank you everyone for joining us today. I really want to take just a moment to reach out and say thank you to the entire team at IsoRay. They worked really hard and I think this quarter really is a testament to the gains we've made and I'm really excited about what the future looks like. Thanks everybody for joining us. Enjoy your afternoon or your evening.

And that does conclude today’s teleconference. We appreciate your participation. You may now disconnect your lines and have a great day.