Good day, ladies and gentlemen. And welcome to Champions Oncology Second Quarter Fiscal Year 2018 Earnings Call. All lines have been placed on a listen-only mode and the floor will be opened for your questions and comments following the presentation. [Operator Instructions] At this time, it is my pleasure to turn the floor over to your host, Ronnie Morris. Sir the floor is yours.

Good afternoon. I’m Ronnie Morris, the CEO of Champions Oncology. Joining me today is David Miller, our CFO. Thank you for joining us for our quarterly earnings call. Before I begin, I will remind you that we will make forward-looking statements during today’s call and that actual results could differ materially from what is described in those statements. Additional information on factors that could cause results to differ is available in our Forms 10-Q and Form 10-K. A reconciliation of non-GAAP financial measures that may be discussed during the call to GAAP financial measures is available in the earnings release. The second fiscal quarter of 2018 exhibited the significant progress we have made over the past year expanding our addressable markets and streamlining our cost structure to position the Company for sustained profitability. For several quarters, we have been discussing the elevated bookings, which we expected would drive increased revenues in future quarters. I am pleased to report that during the second quarter, we generated record quarterly revenue. The record revenue spearheaded our drive to achieve operational profitability. This profitability defined as our operating income excluding stock-based compensation is expected an important milestone for us. Our results at the midpoint of the fiscal year and our visibility into the second half reinforce our confidence in reiterating our outlook for strong annual revenue growth of at least 20% over last year and achieving net profitability and positive cash flow for the full year. We have also completed the movement to our own new state-of-the-art lab facility at Rockville, Maryland, doubling our capacity, enabling us to run studies more efficiently and creating capacity for additional growth. As a result, we expect to realize material lab cost savings of approximately $1 million annually at our current revenue levels. During the quarter, we signed…

Thanks, Ronnie. Our full results on Form 10-Q will be filed with the SEC on or before December 15th. Revenue for the second quarter was $5.2 million, another quarterly record high and an increase of 16.8% over the prior year, driven primarily by a 21.8% increase in revenue in our TOS segment. The year-over-year increase in revenue in the second quarter is the result of our sustained growth in our sales pipeline. By business segment, TOS revenue was $4.8 million for the three months ended October 31, 2017, a 21.8% increase compared to $4 million in the second quarter of last fiscal year. I want to highlight the 22% quarter-over-quarter revenue growth. This percentage is lower than our 30% plus annual revenue growth rate, but result of an exceptionally strong second quarter last year. As we head into the second half of our fiscal 2018, we anticipate our quarter-over-quarter growth percentages will trend higher than the current quarter. TOS gross margin was 50.3% for the second quarter, compared to 53.9% in the year ago period. As a reminder, our gross margins may fluctuate quarter-to-quarter, given the manner in which revenue and expenses are recognized in accordance with GAAP. Expenses are generally incurred and recorded throughout the life a study, while revenue is typically recognized at the time the study is completed. Over time and as our business continues to grow, we expect to narrow the quarter-to-quarter gross margin fluctuations. In addition, we also expect our gross margins to improve over time as we leverage our fixed cost against a higher revenue base and realize some of the variable cost savings generated by operating our new lab facility. Revenue in our POS business segment was $379,000 for the second quarter of fiscal 2018, compared to $497,000 in the same period last…

And our first question comes from Joshua Horowitz. Please state your question.

Hi. Thank you. Good quarter. Is there some way to think about other potential competitively-bid contracts and other specialty programs that you guys are bidding on that we could look at as maybe a pipeline or some other source of additional revenues that we’re not really thinking about in terms of the base business?

Yes. So, we’re certainly, since both the SBIR, AstraZeneca and a bunch of other collaborations or partnerships that we did in the past couple of months or past couple of quarters, we’re certainly looking at that avenue where I’m currently applying for some other grants as well. So, it’s something that because of the space we’re in and because of the importance of what we’re doing, we definitely see that as another avenue for not only helping us build up our -- take away some of our R&D expense, so that we continue to grow without having to expend the dollars ourselves, but we’re also looking it as a possibility for some growth. So, it’s certainly something that we’re engaged in. We don’t really yet have a pipeline, we’re certainly applying for certain stuff and working with them other pharmaceutical partners. And it’s certainly an area that we’re looking to expand.

Thank you. How do we think about the margins on these types of projects?

Do you want to answer that, David?

Sure. I think for the most part, the margins will be similar to our normal margins in the TOS business. Most of the work is very similar. So, the expenses will be the same, the revenues for deal also in line, you just need a different type of product with different revenue stream, but the pricing and the cost should be relatively in line with our current TOS business.

Great. Thank you very much.

Thank you. [Operator Instructions] And there appear to be no further questions at this time.

Thank you very much everybody for joining us in the conference call. We look forward to continuing to update everybody on the call.

Thank you. This does conclude today’s call. We thank you for your participation. You may disconnect your lines at this time, and have a great day.