Greetings and welcome to the EDAP TMS Third Quarter 2017 Earnings 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 now like to turn the conference over to your host Mr. Jacob Goldberger with C. G. Capital. Thank you. You may begin.

Good morning and thank you for joining us for the EDAP TMS third quarter 2017 earnings conference call. On today’s call, we will hear from Philippe Chauveau, Chairman of the Board; Marc Oczachowski, Chief Executive Officer; and Francois Dietsch, Chief Financial Officer. Before we begin, I would like to remind everyone that management’s remarks today may contain forward-looking statements which include statements regarding the Company’s growth and expansion plans. Such statements are based on management’s current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ from those described in such forward-looking statements. Factors that may cause such a difference include, but are not limited to those described in the Company’s filings with the Securities and Exchange Commission. I would now like to turn the call over to EDAP’s Chairman, Mr. Philippe Chauveau.

Thank you, Jacob and thank you all for joining us this morning. Overall, EDAPs positive momentum continued through the third quarter of 2017. Mainly HIFU treatment driven revenue rose significantly during the period. The Ablatherm Fusion device was successfully cleared by the FDA and EDAP’s cash position remains strong at $21.3 million. EDAPs management team has successfully implemented its marketing and growth initiatives and the Company is positioned for success in the U.S. and internationally. I would now turn the call over to Marc Oczachowski, CEO of EDAP.

Thank you, Phillip. Good morning everyone, thank you for joining us for our third quarter conference call. Last night, we published a press release reporting third quarter revenue of €8.1 million and €25.1 of revenue for the first nine month of 2017 but slightly compared to €24.9 million for the first nine-months of 2016. Revenue for the quarter was negatively impacted by lower machine sales in both HIFU and [indiscernible], but was offset by 29% increase in HIFU treatment driven revenues. Urologists have long liked the procedure for prostate cancer that maintain the efficacy of traditional radical treatments while allowing patients to maintain their quality of life. We believe that the significant growth in our treatment volume is a reflection of physicians seeing the potential of HIFU to fill the gap between active surveillance and radical treatments. Q3 is always a slow quarter due to lower activities during the summer holiday season. We are pleased to see that despite this seasonal low trend our momentum continues with significant growth in our treatment driven revenue. This is a key indicator of HIFU adoption and recognition worldwide. We now enter the critical fourth quarter when hospitals attempt to utilize the remaining budget before the year ends. We have a very strong pipeline in both Lithotripsy and HIFU division. Our pipeline consists of some delayed deals that could not be closed in Q3 and some other deals added from our sales team’s prospection work. The entire Company is focused on closing these deals before the end of the year. Q3 was a very active quarter in term of regulatory news and projects for us. As announced on October 4th, we received FDA clearance of our Ablatherm Fusion devise by the FDA. Ablatherm Fusion incorporates EDAP’s proprietary fusion software which merges MRI and ultrasound…

Thank you, Marc and good morning everyone. Total revenue for the third quarter of 2017 was €7.1 million or $8.4 million compared to €8.0 million or $8.9 million for the third quarter of 2016. For Q3 2017, total revenue for the Lithotripsy division was €5.3 million or $6.3 million compared to €5.4 million or $6.5 million during the year ago period. During the third quarter of 2017, EDAP sold six Lithotripsy devices compared to 11 Lithotripsy devices during the third quarter of 2016. Total revenue in the HIFU business for the third quarter was €1.6 million or $2.2 million compared to €2.5 million or $2.8 million for the third quarter of 2016. During the third quarter of 2017, EDAP sold no HIFU devices compared to two Focal One devices during the third quarter of 2016. Whereas HIFU treatment driven revenue increased by 29% compared to Q3 2016. Gross profit for the third quarter of 2017 was €2.8 million or $3.3 million compared to €3.5 million or $3.9 million for the year ago period. Gross profit margin on net sales contracted from 43.2% in Q3, 2016 to 39.4% in the third quarter of 2017, primarily due to the lower revenue level. Operating expenses remind for the third quarter of 2017 at €3.5 million or $4.5 million for the third quarter of 2017 compared to €3.8 million or $4.2 million for the same period in 2016. Operating loss for the third quarter of 2017 was €1 million or $1.2 million compared to a [indiscernible] loss of €0.3 million or $0.4 million in the third quarter of 2016. Net loss for the third quarter of 2017 was €0.5 million or $0.6 million a loss of $0.02 a share per diluted share as compared to a net income of €1.3 million or $1.4 million,…

Thank you Francois. We are pleased with the progress we have made in educating the market about the benefit of HIFU for prostate ablation. We are proud of the advances made in the clearance of Ablatherm Fusion and eagerly await the approval of the Focal One HIFU device. We are continuing and keeping on pushing our revenue growth as these up sell teams are now focusing in converting their great pipeline of projects and leads and in closing as many deals as possible before the end of 2017. We are grateful for your continued support which enabled us to provide a paradigm shift in treatment to so many [indiscernible]. Thank you for joining us today and I would like now to begin our question-and-answer session. Operator.

Thank you. [Operator Instructions] Our first question comes from the line of Swayampakula Ramakanth with H.C. Wainwright, please proceed with your question.

Thank you. Good afternoon Marc. Two questions, so you recently got the approval of Fusion and how this appeal of the Fusion and ability to sell Fusion. How you are in your discussions with the potential clients.

Sorry. The line is not very good RK, can you repeat the question, I did not hear very well.

I'm sorry. How is approval of Fusion helping in discussions with potential clients.

So yes, it's definitely helping, as you know Fusion is a component that will help improving the targeting and the planning of the treatment. So it's really indeed an improvement on the Ablatherm as I said before in the call, we were already working in upgrading a number of our heavy load users in the U.S. with that and certainly is of some interest for some of our projects and leads. So that's a key component, that’s a key feature on our device.

And just coming into the just reported quarter the third quarter, is this a trend something that you expected like the third quarter with no sales in HIFU devices and also as you are suggesting about the fourth quarter could look better than the third quarter. Can you highlight or let us know a little bit about what sort of backlog you are having or at least highlight you know the typical conversations that you are having that makes you feel comfortable and confident about selling in the fourth quarter.

Okay. First of all, I mean we never expect [indiscernible] we know there is a seasonality and we know Q3 is usually the lowest quarter in the year for us. But we have got as I said earlier as well, we have got a number of lived in projects that we wanted to or we tried to close before the end of September that were kind of delayed for a number of reasons and that we are now - whether we have closed in October or we are about to close now. So actually we have a level of confidence on Q4 as we get some delayed project from Q3 and again we also as usual at this kind of the year are getting a number of very hot projects toward the end of the year where hospitals may usually need to get rid of their remaining budget and get some [liquidation] (Ph) done.

Okay. And then you received a C-code in the middle of 2017, what changes are you seeing in the marketplace for HIFU devices since the approval of the code?

Again the C-code is a temporary code that covers the facility fee only, so that’s helping but covering only sort of the treatment, because that’s already some health and that’s already giving some more access specifically Medicare patients to what the technology. So it certainly help us, well the business case to be easier to achieve so that investment could be done.

Okay. And then the last question from me is on Focal One, what sort of discussions are you having currently with the FDA and do you think that FDA will be able to approve this within that the timeline that - can we expect 120 days or from current I think that’s the timeline for them. So what is your feeling about it and what sort of discussion are you having with the FDA at this point?

So starting with the timing, again, it’s always very complicate and difficult to estimate or evaluate any time assumption with the FDA. So I won't be able to answer to you on that question. Now, the discussion we are having with the FDA and as you know and as I said earlier in the call, the main difference and the new part of our current 510(K) file is on the clinical section. So we are discussing with the FDA right now on clinical points.

Okay. Thank you and good luck for the fourth quarter.

Thank you.

[Operator Instructions]. Thank you. Mr. Oczachowski, there are no further questions at this time, I will turn the floor back to you for any closing comments.

Well again thank you everyone for joining us today and we look forward to keeping you posted on our next developments and achievements. I wish you all a great day. Bye.

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