Good day. And welcome to the LiqTech International reports Fourth Quarter and Fiscal Year 2019 Financial Results Conference Call. All participants will be listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Robert Blum with Lytham Partners. Please go ahead.

Thank you very much, Sarah. Good morning, everyone and thank you for joining us today as LiqTech discusses it's fourth quarter and fiscal year 2019 financial results. I am Robert Blum of Lytham Partners, I will be your moderator for today's call. Joining us on today's call from the company is Mr. Sune Mathiesen, the company's Chief Executive Officer. Before I turn the call over to Sune, let me remind listeners that following the conference call, there will be an open Q&A session. You should also note that a replay of this call will be available shortly following the conclusion of the live event and that a transcript of the call will be available on the Investor Relations section of the company website. Before, we begin with prepared remarks; we submit for the record the following statements. This conference call may contain forward-looking statements. Although the forward-looking statements reflect a good faith and judgment of management, forward-looking statements are inherently subject to known and unknown risks and uncertainties that may cause actual results to be materially different from those discussed during the conference call. The company therefore urges all listeners to carefully review and consider the various disclosures made in the reports filed with the Securities and Exchange Commission, including risk factors that attempt to advise interested parties of the risks that may affect our business, financial conditions and sales of operations and cash flows. If one or more of these risks or uncertainties materialize or if the underlying assumptions prove incorrect, the company’s actual results may vary materially from those expected or projected. The company therefore urges all listeners not to place undue reliance on these forward-looking statements, which speaks only as of this date and the date of the release and conference call. The company assumes no obligation to update any forward-looking statements in order to reflect any events or circumstances that may arise after the date of this release and conference call. With that being said, let me turn the call over to Mr. Sune Mathiesen, Chief Executive Officer of LiqTech International. Sune, pleased proceed.

Thank you, Robert, and good morning to all of you. Thank you for joining us today to discuss our fourth quarter 2019 financial results. First of all we hope everyone on the call and your families are safe and healthy. We're certainly operating in some unprecedented times. As you see from the press release results for the fourth quarter and yearend were in line with our preliminary results we had provided back on January 21, which highlighted record revenue for LiqTech in 2019 and the transition to profitability. For the year, revenue was $32.6 million compared to $12.2 million in 2018, an increase of 167% or 182% in constant currency. The growth in revenue was due to the higher sales of our proprietary ceramic silicon carbide water filtration systems in markets where we achieved a significant commercial breakthrough. We're also driving the company profitable with net income of $40,000 compared to a loss of $3.8 million in 2018 which is a turnaround of the $24 million. We have highlighted over the last year the average we believe it's available in our business model and it clearly highlights that opportunity and remember this was despite the fact that we had to overcome the impact of the shutdown during the fourth quarter. With the first furnaces now online and as we continue to improve our margin optimization program, we believe that we we're seeing a further growth and profitability in the years to come. For the fourth quarter revenue was $6.2 million compared to $2.9 in the fourth quarter of 2018 representing an increase of 116%. This was in line with our initial expectations for the fourth quarter we discussed back in November and reflected the impact from the mechanical issues affecting our legacy furnaces. As just mentioned and many of you…

We will now begin the question-and-answer session. [Operator instructions] Our first question comes from Eric Stine with Craig Hallum. Please go ahead.

So I know your balance sheet is in very good shape and you've got a history of running things pretty tight when you need to. But just curious if you could talk about some of the cost-reductions that you referenced in the release, what some of those levers are what the potential magnitude of that could be as you navigate the current environment and maybe are those some things that would show up fairly quickly in your financials.

So we have already taken some steps, we are taking further the column [ph] and to put a number of initiatives in place to help Danish companies through this crisis and altogether the magnitude we are looking into is the ability to scale off about $420,000 per month. So a little bit more than $1.2 million on a quarterly basis. I'm not saying that we will do all of that. Just saying that that is what we are prepared for and if we take all the steps that we put into our plan that will come into effect by July and step-by-step some cost-reductions already next month and some later. We'll be using a combination of old initiatives and the government initiatives in place.

That's helpful and then maybe you mentioned no order cancellations, but just as you think about the backlog that you have in place maybe just how the timeline the expected timeline has been likely pushed out I think in the past it was kind of hopeful that it was a 12-month sort of backlog maybe what that looks like today just in light of activity slowing down given the current environment?

It's obviously been developing day by day here. I think a good way of showing that is that we've actually made all deliveries planned in the first quarter so far. Now it's getting more and more I would say quiet especially from the European… [Abrupt End]