Good day and thank you for standing by. Welcome to the Zoom Telephonics Inc. doing business as Minim Q1 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I'd now like the hand the conference over to your speaker today James Carbonara from Hayden IR. Thank you. Please go ahead.

Thank you and good day everyone. We appreciate you joining us today for Minim's first quarter 2021 earnings call. Joining me on the call today are Gray Chynoweth, Chief Executive Officer; and Sean Doherty, Chief Financial Officer. Following the prepared remarks, we will open the call to your questions and instructions will be given at that time. Company filed its Form 10-Q with the SEC and issued a press release today. All materials including today's live presentation are available on the company's investor relegations website at ir.minim.com. An audio replay of today's presentation will be available later today. Before we begin, I want to remind everyone that today's conference call may contain forward-looking statements. Forward-looking statements include statements regarding the future including expected revenue, operating margins, expenses and future business outlook. Actual results or trends could differ materially from those contemplated by these forward-looking statements. For more information, please refer to the Investor Relations page for additional risk factors discussed in Minim's filings with the SEC. Please note, too, that today's call may include the use of non-GAAP numbers and management utilizes to analyze the company’s performance. A reconciliation of such non-GAAP numbers to the most comparable GAAP measures is available in our most recent press release, as well as in our periodic filings with the SEC. These materials are available on the company’s Investor Relations website at ir.minim.com. With that, I will turn the call over to Chief Executive Officer, Gray Chynoweth for his prepared remarks. Gray, please proceed.

Thanks James Well, great to be with everyone. Good morning and welcome to Minim's first quarter 2021 conference call. Let's get started on slide four. We entered 2021 on the heels of a successful merger between Zoom Telephonics and Minim Inc., and a rebrand of the combined company to Minim. This merger paved the way for a powerful combination of a proprietary AI-driven software and market-leading home networking hardware. Minim has a singular focus to make everyone's connected home safe and easy to use for life and work. As the holder of an exclusive global license to design manufacturing distribute Motorola branded home networking products. We stand out in the market with our advanced software driven networking products that empower end users with personalized and optimized their home connectivity experience. Turning your attention to slide five. I'm excited to discuss the momentum we have built in the first quarter of 2021. Minim delivered strong first quarter financial results. It was another record revenue quarter, our third in a row. We saw a 26% year-over-year increase from 2020. We also drove gross margin expansion on a year-over-year basis and on a sequential quarter-over-quarter basis. Our results also showed that we've activated our subscription software revenue strategy. We now have two hardware/software bundled products in a market. I could not be more pleased that this quarter for the very first time we were reporting deferred software subscription revenue on our books. Later in the call, Sean will further define our approach to this and share metrics we'll be using to demonstrate our progress. Moving to expenses. This past quarter saw the last of the material merger related cash and non-cash expenses, with these now largely in the rear view mirror, we will continue to responsibly manage costs with the focus on achieving…

Thank you, Gray. I'd like to direct you to slide 13 for a look at our revenue. As Gray stated, we recorded record revenue for the first quarter of $15.0 million, a 26% year-over-year increase. This marks our third consecutive quarter of record revenue growth. This growth continues to be driven by new investment in sales and marketing talent and a shifted focus to digital marketing, both of which have resulted in higher retail and amazon.com sales performance. Also contributing to revenue and profit margin is a climbing average sales price, which Gray spoke to earlier. Going forward, we are targeting a 10% to 20% lift to our average selling prices for bundled hardware/software products. Gross margin improved for the fourth consecutive quarter. For the first quarter of 2021, we reported a 34.0% gross margin, which represents an 810 basis point improvement compared to 25.9% in the first quarter of last year. This also compares favorably to the 32.8% gross margin recorded in the fourth quarter of 2020, a sequential improvement of 120 basis points. Gross margin improvements are being driven by an increasing proportion of revenues from software, as well as prudent management of various elements we set our cost of goods sold. Over the long term, and as we fully realize our software-driven product strategy, we expect our gross margin to normalize and expand. Please turn to the next slide for additional color regarding our revenue. We are introducing a key performance indicator this quarter, that is our revenue bookings. Bookings is a non-GAAP metric that we believe is important to understanding our business as we grow and shift our sales mix to include a larger portion of software subscription versus hardware only sales. Revenue bookings is our total recognized revenue, plus the changes in deferred revenue in…

At this time, there are no questions in the queue.

Awesome. Well, thank you everyone for joining us this morning. And as a reminder, we'll be presenting at the Sidoti Microcap Virtual Conference later this week on Thursday, May 20th. You can find details in our Investor Relations website ir.minim.com. We hope you can join us again then. If you have any questions, please contact Sean or our Investor Relations team. Thank you and have a great day.

Thank you. This concludes today's conference call. You may now disconnect.