Good day ladies and gentlemen, and welcome to Nortech Systems’ Fourth Quarter 2016 Earnings Conference Call. All lines have been placed in a listen only mode. And the floor will be open for questions following the presentation. [Operator Instructions] At this time, it is my pleasure to turn the floor over to Paula Graff. Ma’am the floor is yours.

Thank you. Good morning and welcome to Nortech Systems' fourth quarter and year-end 2016 conference call. I'm Paula Graff, Vice President and CFO. And with me is, Rich Wasielewski, Nortech's President and CEO. Following my introduction, Rich will offer comments on our fiscal year and fourth quarter results, and markets we serve and our industry. Then we’ll open up the call for any of your questions. Before we begin, please be advised that statements made during this call may be forward-looking and are subject to risk factors and uncertainties. Please see the complete Safe Harbor statements in our press release and SEC filings. Now I will turn over the call to Rich Wasielewski. Rich?

Thank you, Paula, and good morning, everyone. To start, I’d like reiterate our strategic goal is to be the proffered EMS supplier partner to our customers in the medical, aerospace, defense and the industrial commercial industries. We are continuing to transform our business from a commodity transaction model focused on price and service manufactured to customer specifications to a model more global, offering value added and cost effective services that will deliver solutions and technology opportunities. In 2016, there were several initiatives that contributed to that value added solution business model across all our markets. The successful opening of our operations in Suzhou in China now servicing our largest global customers. In addition to providing our customers with global regional support, we’re starting take advantage of the Asia electronic component supply chain that has developed over the last 20 years. Also in 2016, we began to resource and budget for an intellectual property for our products platforms and services. Our efforts have resulted in a number of potential trade secrets and pattern opportunities that will enhance our value added solution selling process. During the year, we took further action on profiling our customer base into transactional key and strategic partners. There were targeted pricing actions and accounts that were more transactional which we describe as PO-to-PO customers they aided in our gross margin improvement. And on the key and strategic partners, we stepped up our penetration increasing our cross sell and own engagement activities. And also we consolidated resources and reduced excess capacity in our aerospace and defense and industrial cable and wire products build by closing down the Wisconsin facility. The last production in the Augusta, Wisconsin was January 31st, although closing the plant was not easy. Our employees there did a professional job and we owe them a…

Thank you. [Operator Instructions] And our first question comes from Sheldon Grodsky please state your question.

Good morning everybody.

Good morning Sheldon. I missed you last quarter.

I don't recall, but it’s possible I missed it. Let me - I just want to give a quick summary of the unusual items you hand in the third quarter bad debt expense of about 300,000?

It was 400,000, but we got it was 450,000, but I believe we got a credit by the end of the year for about 50,000, so about 400,000 for that impact.

So you went quickly over something that was new to me today, was that an arbitration you said?

It was mediation, if we didn't mediate it, it was going to go through binding arbitration.

Okay. Mediation and how much you - I’ll say whatever you have to adjust for that one?

The net of it was 211,000.

And did that hit the fourth quarter or?

It hit the fourth quarter. The intangible IP that we got out of the settlement will get in the first quarter of this year, and that’s about $100,000.

So the intangible - what was that?

The IP, the intellectual property we got out of the settlement. We'll hit the books in Q1 about $100,000.

As a plus item?

As a plus, as an asset.

Okay. I think I'll let that be it for the moment. Thanks.

Okay. Well thank you, Sheldon.

Thank you. [Operator Instructions] And there appears to be no more questions at this time.

If there are no further questions we conclude this call. Thank you for your interest in Nortech and we look forward to updating you in a future. Have a great day.