Greetings and welcome to Ekso Bionics Second Quarter 2019 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]. Please note this conference is being recorded. I will now turn the conference over to your host David Carey with Lazar Partners. Thank you, you may begin.

Thank you, operator, and thank you all for participating in today's call. Joining me from Ekso Bionics are Jack Peurach, President and Chief Executive Officer; Jack Glenn, Chief Financial Officer; and Bill Shaw, Chief Commercial Officer. Earlier today, Ekso Bionics released financial results for the quarter ended June 30, 2019. A copy of the press release is available on the company's website. Before we begin, I would like to remind you that management will make statements during this call that include forward-looking statements within the meaning of the federal securities laws, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements contained in this call that are not statements of historical facts should be deemed to be forward-looking statements. All forward-looking statements, including without limitation or examination of historic operating trends and our future financial or operational expectations, are based upon management's current estimates and various assumptions. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated or implied by these forward-looking statements. Accordingly, you should not place undue reliance on these statements. For a list and description of the risks and uncertainties associated with our businesses, please see our filings with the Securities and Exchange Commission. Ekso disclaims any intention or obligation, except as required by law, to update or revise any financial or operational projections or other forward-looking statements, whether because of new information, future events or otherwise. This conference call contains time-sensitive information and is accurate only as of the broadcast today, August 1, 2019. I'll now turn the call over to Jack Peurach.

Thank you, David. I'd like to start by reiterating our vision here at Ekso Bionics. We are committed to amplifying human motion by enhancing strength, endurance and mobility across medical and industrial applications with advanced robotics. And we feel great about our progress towards our vision. Our financial results for the second quarter of 2018 reflected continued revenue growth primarily driven by higher Ekso GT sales in the United States, a higher rate of rental-to-sale conversions for the Ekso GT and solid margin expansion within EksoHealth segment. These results demonstrate the increasing demand for an adoption of Ekso GT, exoskeletons, as well as our ability to operate more efficiently across all aspects of the company. While we are very pleased with the gains we achieve from our optimized U.S. commercial strategy for our Ekso GT exoskeletons, our growth levels here were offset by softer performance in EMEA and APAC. Second quarter revenue was $3.3 million, up from $3.0 million in the same quarter last year. Gross margins expanded to approximately 48%, an increase of 15 percentage points from the second quarter of 2018, as we continue to achieve greater selling efficiencies while reducing our production costs. Over the past several quarters, we've emphasized our continued focus on better managing our costs. We are pleased that our operating expenses for the second quarter of 2019 are more than 18% lower than prior year quarter. This resulted in reduced net loss. The operating efficiencies that we have achieved and creating a leaner organization with a reduced cost structure enabled us to lower our use of cash. We are proud of our operational accomplishments, which are trending in the right direction. And we expect this trend to continue as we optimize our company to meet the needs of our customers and their patients.…

Thank you, Jack. In the second quarter of 2019, Ekso generated revenues of $3.3 million, an increase of $300,000 per 10%, compared to the prior year period. The growth reflected continued execution of our U.S. commercial growth strategy, resulted in an increase of EksoHealth revenues. The breakdown for Q2 2019 revenue is as follows. We recognize approximately $2.8 million in medical device and related revenue, up from $2.4 million in Q2 of 2018. We booked 22 Ekso GT units in the second quarter of which two units were rentals. Additional 11 previously rented units were converted to capital sales. Bookings represent orders that have either been shipped or in the process of being shipped. We recognize approximately $415,000 in EksoWorks revenue compared with approximately $555,000 in the same period a year ago. The decrease is primarily due to delayed customer purchasing decisions. Our gross profit for the quarter was $1.6 million, representing a gross margin of approximately 48%. This compares to a gross margin for the same period last year of 33%. This strong increase in our gross margin is primarily attributed to continued execution of our medical business. We achieve higher average selling prices, improved reliability and lower production costs for Ekso GT devices. Going forward, we continue to focus our efforts on increasing total gross margin. Operating expenses for the second quarter of 2019 were $6.7 million compared to $8.2 million for the second quarter of 2018, a reduction of approximately $1.5 million, or about 18%. This reduction reflects the continuation of the company wide initiatives we implemented last year to optimize our organization and focus on our sales of commercialized products. Loss from operations for the quarter was $5.1 million, compared to a loss from operations of $7.2 million in the second quarter of 2018. Now loss…

Thank you all for joining us today. To recap, second quarter growth reflected higher U.S. sales and higher rental-to-sale conversions for Ekso GT units. This is a strong indication that we are successfully educating current and potential customers about the benefits that our Ekso GT exoskeletons provide to patients and care providers. We also improved our financial performance by lowering production costs to drive expanding gross margins, and better managing our cost structure to reduce operational expenses. Going forward with an expanded sales and marketing team, we expect to continue strengthening our customer pipeline while maintaining our disciplined approach to managing costs. Additionally, we have completed treating all 30 patients in the unit, we expect to report the complete study data before the end of 2019. I'd like to thank everyone for joining us on today's call. We look forward to updating you on our continued progress.

Ladies and gentlemen, this does conclude today's teleconference. Again, we thank you for your participation and you may disconnect your lines at this time.