Greetings, and welcome to the Mannatech Incorporated Second Quarter 2014 Earnings Conference Call. At this time, all participants are in a listen-only mode. As a reminder, this conference call is being recorded. Now, I’d like to introduce our moderator for today’s call, Mr. Mark Nicholls, Chief Financial Officer. Mr. Nicholls, you may begin.

Thank you. Good morning, everyone. This is Mark Nicholls, and welcome to Mannatech's second quarter 2014 earnings call. Today, you will hear from both me and Mannatech's CEO and Chief Science Officer, Dr. Rob Sinnott. Before we begin the call, I will first read the Safe Harbor Statement. During this conference call, we may make forward-looking statements, which can involve future events or future financial performance. Forward-looking statements generally can be identified by the use of phrases or terminologies such as will, continue, may, believe, intend, expects, potential, should, and plan or other similar words or the negative of such terminology. We caution listeners that such forward-looking statements are subject to certain events, risks, uncertainties, and other factors and speak only as of today. We also refer our listeners to review our SEC submissions. At this time, I would like to make a few brief comments concerning our second quarter 2014 operating results. The second quarter of 2014 net sales was $46.3 million, a 3.4% increase from the second quarter of 2013 net sales of $44.8 million. Net loss for the second quarter of 2014 is $692,000 or $0.26 a diluted share as compared to net income of $784,000 or $0.30 per diluted share for the second quarter of 2013. Recruiting of new associates and members decreased 13% in the second quarter of 2014 as compared to the second quarter of 2013. The number of new independent associates and members for the second quarter of 2014 was approximately 31,500 as compared to 36,200 in 2013. In 2014, we implemented new incentive programs in major countries that changed the qualification criteria as well as extended the qualification period for the various travel incentives as compared to the incentive programs in 2013. We believe these changes had a negative impact on the…

Good morning to Mannatech's investors, customers, associates and employees. You just heard a detailed analysis of the financial results from our CFO, Mr. Mark Nicholls. Now I'll give you a little color commentary and what we see as some of the big things influencing Mannatech at this particular point in time. We are pleased with our continuing increase in net sales for the second quarter, we had a 3.4% increase in year-over-year net sales when comparing Q2 2014 back to Q2 2013. Our operating expenses remain largely in line with our budget, but we did have some timing issues that increased expenses and resulted in a loss for the quarter. We regret this situation, but believe that it’ll be a temporary situation as we improve our operational efficiency and expand our proven Three Point Plan sales system globally. The analogy that comes to mind is starting a large diesel engine that hasn’t been run in a while. When it first starts up it will backfire and sputter before it starts producing immense power. That’s exactly how I see Mannatech right now, the engine is installed anymore, but it’s definitely not to full power yet. More specifically when the company was running unprofitably over the past several years, some inefficiencies had crept into our business that are just now becoming visible as our sales are increasing. Uneven sales growth in our countries of operation and shifts in associate buying patterns have taken a toll on our inventory and our global tax situation. We are aware of the causes and we are committed to implementing solutions which include operational efficiencies and holding to benchmarks of profitability in all our countries of operation. We are implementing supply chain improvements in order to better project future demand, decrease our lead times, better control manufacturing…

Thank you for listening to Mannatech’s second quarter 2014 earnings call. As a reminder, company information and filings can be found at the company's Investor Relations website ir.mannatech.com or by reviewing SEC submissions. This concludes today's call.