Good day everyone and welcome to today’s program. [Operator Instructions] Please note this call is being recorded. It is now my pleasure to turn the conference over to Mr. Jeff Ronaldi. Please go ahead.

, : This afternoon Document Security Systems issued a press release announcing its second quarter of 2016 financial results. Before we begin, I’ll review the company’s Safe Harbor statement. Forward-looking statements on this call, including without limitations, 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 contains such words 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 disclosed in the Risk Factors section of the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2015, previously filed with the Securities and Exchange Commission. Forward-looking statements made as part of this call are being made as of today, August 15, 2016, 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, you will find additional disclosures regarding this non-GAAP financial measure and reconciliations of net loss to adjusted EBITDA. I’d like to now turn the call over to Robert Fagenson, Chairman of the Board of Document Security Systems. Robert?

Thanks, Jeff, and thanks to all of you for joining the call today. It has been quite a while since we hosted our last investor call. So some of you may be curious as to why we’re returning to this format today. To be perfectly frank, our feeling is that we’ve made a great deal of progress in stabilizing the company, and the time has come to increase our visibility in the financial community and improve our communications with our shareholders. Usually, that type of action is centered on the belief that the company has something positive to say and that is indeed the case. Both Jeff and Phil Jones, our CFO, will go into detail on the progress we’ve made in our various business lines, expense reduction, and other financial and operational measures that have finally let us after many, many years to a period where adjusted EBITDA has finally turned positive. We’re long last bearing the fruit of the hard work of our team members and what they've done and expect to be able to build on these accomplishments as our key technologies continue to find increased acceptance in our targeted markets and allow us to resume the type of growth and success that thus far as alluded us. So with that, I'll turn the call over for some subset of remarks to Jeff and Phil. And Phil Jones, you’re up.

Great. Thank you, Robert. Today, we announced our second quarter financial results which are summarized in the press release we published after market closed today and detailed in our Form 10-Q filed with the SEC today as well. As highlighted in our earnings press release, the second quarter was a very strong quarter for DSS, especially by the measurement of adjusted EBITDA, which I’ll go into further detail on a bit. Adjusted EBITDA has been an important measurement of core profitability of our operations and is the metric that has been a focus for the management team since mid-2015. During the second quarter of 2016, the company generated adjusted EBITDA profit of approximately $112,000, which has made the company adjusted EBITDA profitable for the first half of 2016. This is an important and exciting milestone for the company. After a very strong first quarter, revenue for the second quarter of 2016 dipped slightly to $4.1 million, down 3% from the same year ago period, but has maintained strong year-over-year growth of 10% for the first half of 2016. During the first half of the year, we have increased sales of printed products by 15% which includes our packaging, ID card, and security printing product sales as the company has benefited from increases in demand for a wide variety of our products and solutions in these areas. Revenues from technology sales, services, and licensing have decreased 23% during the first half of 2016, but this has been primarily due to a strategic decision to reduce low-margin hardware sales at our company's digital division, and the impact of an absence of a one-time license fee of $150,000 which we realized in the second quarter of 2015 that did not occur in 2016. Cost and expenses for the second quarter of 2016 decreased…

Thank you, Phil. I would like to thank everyone for your continued support of Document Security Systems and provide this update to our current and prospective investors. A lot has happened since our last call at the end of 2014. First, as Phil described, our financial performance has improved significantly. We have been able to decrease our costs without impacting our investments in research and development and our commitment to developing products and solutions to address the massive counterfeiting and product fraud issues that exist today. Our company has established several strong niches in our market upon which we are building our next generation products. So I'm very pleased with the adjusted EBITDA results; I'm even more pleased with the direction of our product zone and efforts. We continue to see immense opportunity within this billion dollar industry for DSS. We’re building the products and sales and marketing capability to capture market share. Improvement in our EBITDA results is a direct result of several underlying trends. Our packaging group led by Bob Bzdick, his experience, continued strong demand by its commercial packaging customers and is operating at a high efficiency that has a dedicated highly trained workforce that is focused on end to end customer service that has been critical to establishing and maintaining its important customer relationships. Our security printing group which is also headed up by Bob Bzdick and which operates at the same location and in close conjunction with our packaging group continues to apply our security printing technologies and solutions to a wide array of orders for our customers. This group's direct sales effort, bringing sales of high-margin products and keep us involve in solving the day to day issues faced by our customers. Understanding the challenges faced by customers provides us with insight necessary to…

Thank you, Jeff. And once again for a final time, thank you all for staying with us and for being on the call today. And first I’d like to discuss the reverse stock split [indiscernible] after the market close on Thursday, August 25. On that day, the 1-for-4 reverse stock split will be effectuated, thus reducing our share count to approximately 12,976,000 shares immediately after the split, with an offsetting increase in our share price as of that date by four times. The stock split will not affect the market value of DSS, but will impact our ability to maintain our status on the New York Stock Exchange’s market exchange. As we explained in our Annual Report and proxy, we felt this is an important step that we needed to make, and we're pleased that our shareholders agreed and approved the split on our shareholder meeting in late July. Maintaining an exchange listing is an important company asset and important shareholder asset, and we appreciate your positive votes in having this vital proposal approved. While there are people who would say that a reverse split doesn't help and then the share price falls again and clearly it's either going to go up or down or remain what it is, the prospect of losing our listing for us was a certain loser. If we allowed that to happen, the value of our company and our shares we felt would be depreciated significantly just as people perceive the accessibility of a marketplace that they can have some faith in being able to buy and sell shares. So that is what led us to the conclusion and that ultimately is what led to shareholder approval, I believe. As I said before, it's nice to have something positive to report. Obviously, there's no guarantee that recent successes will continue, but I'm extremely hopeful that they're on the right track at the company and that our patience and perseverance and hard work that our team continues to do will lead to meaningful rewards in future quarters. Basically you've heard from two of our senior operating executives about the success that they made and I don't want for a minute to minimize the work and effort of our entire team in getting there. It's been years and years of talking about it, finally reaching a positive adjusted EBITDA number. And now the time is here and the question is how do we leverage it going forward? I think Jeff and Phil and Bob and Mike and the rest of their team are moving in the right direction and we can finally hopefully see the light at the end of the tunnel that we have been so much anticipating for so long a time. So with that, I'm going to open up the floor to questions. And operator, would you take over, please?

On behalf of Jeff and Phil, I can also say goodbye. Thanks once again for being with us, for staying with us, for having the faith and hopefully in the quarters that come towards us that faith will be rewarded and the trends of recent years will be reversed. We are continuing in our best efforts to make that happen and you can rely on us to do so. So with that Jeff, Phil, anything else?

No. I and Phil want to appreciate the support and looking forward to continuing to open up our transparency to our investors so they can see what we're doing.

Absolutely. So we’ll all be talking to you in the quarter that's coming. Thanks again and goodnight.

Ladies and gentlemen, this will conclude today's program. Thank you for your participation. You may now disconnect. Have a great day.