Greetings, and welcome to the Document Security Systems’ 2013 Fourth Quarter and Year End Financial Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded. I would like to now turn conference over to your host Peter Salkowski, Investor Relations for DDS. Thank you. You may now begin.

Good afternoon. And I’d like thank everyone for joining us today for the Document Security Systems’ fourth quarter and full year 2013 earnings conference call. Joining me on today’s call are CEO, Jeff Ronaldi, and CFO, Phil Jones. Following Phil and Jeff’s prepared remarks, we will open the call for your questions. This afternoon, Document Security systems issued a press release announcing its fourth quarter and full year 2013 financial results. That press release is available on the company’s website at www.dsssecure.com. Before management begins, I’ll review the company’s Safe Harbor statement. Forward-looking statements on this call, including, without limitation, statements related to the company’s plans, strategies, objectives, expectations, potential value, intentions and the adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act and contain words such as “believes”, “anticipates”, “expects”, “plans”, “intends” and similar words and phrases. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the results projected. In addition to the factors specifically noted in the forward-looking statements, other important factors, risks and uncertainties that could result in those differences include, but are not limited to, those risks in the “Risk Factors” section of the company’s Annual Report on Form 10-Q for the year ended December 31, 2013, to be filed with the Securities and Exchange Commission. Forward-looking statements made as part of this call are being made as of today March 26, 2014, and the company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. During the call today management will discuss adjusted EBITDA, in the company’s press release issued today and in the company’s filings with the SEC, you will find additional disclosures regarding the non-GAAP financial measure and reconciliations of net loss to adjusted EBITDA. I would like to now turn the call over to Phil Jones, Chief Financial Officer of Document Security Systems. Phil?

Thank you, Peter. Today, we announced fourth quarter financial results, which are summarized in the press release we published after market closed today and detailed in the Form 10-K filed with SEC today as well. We have now reported twice into our merger with Lexington Technology Group or Lexington in July 2013. To review printed products revenue consists of the results from our packaging, plastics, and printing business units. Technology, sales, services, and licensing revenue consist of results from our DSS Digital and DSS Technology Management Business units. These units are engaged in the various aspects of developing, acquiring, selling, and licensing technology assets. For the fourth quarter, total revenue was $5.2 million down 5% year-over-year marked by 3% increase in technology revenue offset by 6% decline in printed products revenue. Year-over-year increase in technology revenue primarily reflects the digital revenue generated by our DSS Technology Management Division. Two factors mainly contributed to the year-over-year decline in total fourth quarter revenue. First was our efforts to focus on higher profit margin printing and packaging customers, this resulted in the loss of some less profitable business. Second, we are up against a very difficult comparison in which the fourth quarter of 2012 total revenue was up 30% due to the timing of sales to our largest customer, this revenue was offset by lower first quarter of 2013 sales to that same customer. In the fourth quarter of 2013, we saw that customer return towards more normal ordering pattern. Fourth quarter, cost and expenses increase 19% from 2012 which once again will [pace by] [ph] the significant growth in noncash based patent amortization expense, which was driven by a substantial increase from the value of our intangible assets on our balance sheet as a result of the Lexington merger. Cash based expenses…

Thank you, Phil. I’d like to thank everyone for your continued support of Document Security Systems. DSS has always been a technology operating company that engages in IP licensing and enforcement. Management has focused on continuing to improve the profitability of our printed products and growing the technology sales, services and licensing group. Since mid-2013, management has performed well against our strategic objective. We’ve improved the performance of our printed products group as demonstrated by the group’s strong adjusted EBITDA growth for both the fourth quarter and full year of 2013. In the fourth quarter we generated revenue from Authentiguard by way of a contract with MedTech Wristbands. We accomplished our goal of investing in five to seven IP portfolios and closed the year with a total of six patent portfolios which includes the additions of the semiconductor and Bluetooth patents. Adding to this, we adjusted the company’s incentive structure to better align DSS employee interest with shareholder interest. On this last point we granted stock options as part of a total compensation to DSS employees who’ve worked for the company for at least a year. While we believe we’re driving the company in the right direction, we realized there is a lot of heavy lifting ahead. For the printed products operation we’re targeting a level of the same profitability. For the technology business we are carefully evaluating and investing in multiple IP opportunities so as to be less dependent on a single case outcome. With many cases lasting two to three years this can be an arduous and timely process. However, we expect the end results of these efforts to generate positive cash flow on a consistent basis. I’ll now review some of the events that occurred for DSS in the fourth quarter of 2013, including positive development with…

Thank you. We’ll now be conducting a question-and-answer session. (Operator Instructions) Our first question comes from Mark Argento from Lake Street Capital Markets.

Just two quick questions, one, could you remind us typically when you do the co-investments with additional investor how the basic economics of those relationships work. And then secondly as you look to expand your IP portfolio, if you could talk a little bit about what areas generally from a technology perspective you’d be focusing on? I know there has been, you’ve run in a few roadblocks in terms of some of the technology areas given some of the different activities in the court systems but you’ll stay focused on - in and around software and/or security or would you look to branch out outside of that area?

The co-investments are typically made - each one is different, so it’s hard to characterize them all together, some of them are actually co-investments worth dollar-for-dollar equal where we are just going split profit. This last one was a bigger deal where they provided a certain amount of funding and for that they get priority return. All that is spelled out in our filings but what it does is allow us to expand and reduce our risk by getting a bigger portfolio which is critical for this. As we have stated, we need a broader portfolio to reduce the risk on a single outcome. The answer to your second question about expanding in areas we are going to look for, it’s - we are an operating company and what we are doing is looking for patents that protect our various products and allow us to sell a product that doesn’t infringe on other peoples IP, if it happens, if this, the IP we acquire has monetization capability we will go ahead and pursue that, so to answer your question it’s been in support of our operating divisions. And one last piece on the pending Supreme Court decision, for now we are shying away from software patents until the Supreme Court can clarify what’s patentable.

In terms of other business development strategies, are there opportunity to acquire other complementary operating businesses that also have similar characteristics in terms of their dependence on technology IP or you looking prominently just at the IP assets?

We are looking at undervalued assets and so that happen to the operating divisions, we would be glad to look at that as well. So, it’s not just exclusively looking for IP, if it comes along with the business that’s even better.

And last question for me, what’s the total headcount today and could you compare that to historically the various levels of headcount within the organization?

Phil, you have been here longer than I have.

Yes, right now we are right around 105, and that’s fairly consistent. We’ve seen turnover from some of our manufacturing headcount but we’re placing those with the developer and the technology related headcount. So, we have been pretty consistent here for the last three years around 105.

And what percentage roughly are engineers?

About 15% are in the technology and the development group, software engineers, IT professionals, so 15%.

Thank you. Our next question comes from Bob Wasserman from Dawson James.

Hi guys. Congratulations on the good year. Wonder if you could comment little bit about your cash needs for this year without borrowing the receipt of any type of litigation settlement, maybe split that up a little bit between what’s your CapEx is for the printed business and also what’s your operating cash flow will be for the technology group business. I know you’ve got some leeway left in your financing but maybe if you could comment a little bit about your cash needs for this year.

Okay, this is Phil. As we said, we do have, considered to be a healthy cash balance as of year-end plus the additional funding that we spoke about that we received in February 2014. So, the business model is geared towards generating our cash and profitable cash flow from the operating groups, the printed products group, and they certainly were able to do that in 2013. That group also had a fairly significant equipment upgrade that we are able to finance. So, the idea is any equipment in that group can be financed through traditional, either bank debt or equipment finance. Beyond that as Jeff could speak too as well, it’s basically evaluating investment opportunities and determining best way to go about financing those opportunities, third-party funding, profit sharing, existing cash et cetera. So, Jeff I don’t know if you have anything to add to that.

Sure, thanks Phil. As far as evaluation of new opportunities, the opportunity based funding, we have enough cash for operations but if we see an opportunity that’s larger than that and there is a third-party funder that’s willing to come in and help support that, we will evaluate it. Having a strong cash position allows us to be much stronger at the settlement table when dealing with these losses. So, I like where we are right now.

Okay, thanks, I know that was a broad question but thanks for answering that.

Any additional questions?

Thank you. I will now turn the floor back over to Peter Salkowski for closing comments.

Great. I’d like to thank everyone for being on the DSS shareholders earnings call. Much appreciate your interest in the company, and we look forward to updating you guys in the future. Have a good day. Take care.

Thank you. This does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation.